President Ferdinand Marcos Jr. on Wednesday said the ongoing Israel-Iran conflict has had little impact on the Philippine economy, especially with the two nations having agreed to a ceasefire.

“So far, there is no effect. So, there is no significant effect on the economy,” Marcos told reporters in an interview.

Earlier, the President met with his economic team to assess the possible impact of the Middle East tensions on global oil prices and the country’s preparedness.

“We looked at it and we analyzed what would happen. And we see that the effect on the economy should be manageable,” he said.

However, Marcos noted that fuel prices could still increase even if the situation in the Middle East stabilizes.

He pointed out that the price of crude oil per barrel recently rose to US$79 but later dropped to US$69. If prices reach US$80 per barrel, the government will activate its fuel subsidy program.

Under this program, once the Department of Energy notifies the Department of Transportation and the Department of Agriculture, financial assistance will be distributed to public utility vehicle drivers, delivery riders, farmers, fisherfolk, and other affected sectors.

Business as usual 

With oil prices currently stable, Marcos said the government sees no need to implement subsidies yet.

“If the price of oil did not change, then we do the same like before. What we mentioned before is it is not a financial aid but a subsidy, if the price went up. If it didn’t, there is no need for that,” he said.

Marcos also expressed concern over what he described as "price gouging" by oil companies, noting that some firms increase pump prices even when the global price remains unchanged.

“That’s what we are looking at right now, the price gouging. Because I've seen a lot of price increases [when] the price of oil hasn't increased. So, that's what we're going to monitor now,” he said.

The President added that the Department of Energy has asked oil companies to stagger their price hikes. Companies responded by spreading a recent P5.20 increase over two days — P2.60 on Tuesday and P2.60 on Thursday.