A member of the Marcos Jr. administration's Private Sector Advisory Council, or PSAC, on Thursday, said that the ongoing turmoil between the political and militant group Hamas and the Israeli government has no direct effects on the prices of commodities but said it may affect oil prices.
During the Bagong Pilipinas Ngayon of the state-run television network PTV 4, the lead for jobs of Marcos Jr.'s Private Sector Advisory Council, Joey Concepcion said the war will not affect commodity prices as the country is not dependent on Israeli imports.
"We do not import much from Israel. It may have some influence on oil prices. Prices of fuel went stable, and then it is up now because of the conflict to about $89 to $90 per barrel. So, the volatility in oil will remain because Israel is near to oil-producing countries. But I am confident that the rest of the commodities will be just like what it is now," he said.
Supply remains constant
On Wednesday, Department of Energy-Oil Industry Management Bureau director Rino Abad said that based on their assessment, the ongoing conflict in Israel poses a very low chance of resulting in actual supply disruption.
"But of course, the other neighboring countries in the Middle East led by Saudi Arabia, Kuwait and Qatar, that is where we traditionally get crude oil. The only issue there is if there will be a problem in the supply in these countries," Abad said in a television interview.
Also, Concepcion stressed that unlike what happened during the start of the Russia-Ukraine war, the Hamas-Israel conflict will not affect wheat prices.
"On wheat prices, we have had stock until next year. Since July, prices have been stable. I don't see more problems from the Ukraine-Russia friction which initially caused wheat prices to move up. But ever since then, wheat prices have come down and are now stable," Concepcion, also the president and chief executive of RFM Corporation, explained.
In terms of trade between Tel Aviv and the Philippines, Concepcion maintained that there is nothing to worry about because the enduring relationship between the two countries is just on information technology, and knowledge support on agriculture.
"It's not big and I don't think we should worry about it since we don't trade too much with Israel as far as I know. On top of our purchases are from the rest of ASEAN countries and in America. Most of our wheat and sugar trade involves the rest of ASEAN. So, I think we should be fine, and I am very confident even if it does escalate. The only problem is the safety of our OFWs who are stuck and cannot come home," he said.
