Zarate warns PH may face inflation surge over oil crisis

Former Bayan Muna representative and House Deputy Minority Leader Carlos Isagani Zarate warned Thursday that the Philippines could face a surge in inflation in the coming months if the government fails to act decisively on the oil price crisis.

Zarate issued the warning as the Philippine Statistics Authority reported that inflation rose to 2.4 percent in February from 2 percent in January.

He said the increase could be an early indication of stronger price pressures ahead as global energy markets react to the continuing conflict involving the United States, Israel and Iran.

The former lawmaker said the country could experience multiple price shocks if the administration fails to implement stronger policy measures.

He said rising oil prices could trigger a domino effect across the economy, pushing up transportation costs, food prices, electricity rates and other basic goods.

Zarate warned that ordinary Filipinos who are already struggling with economic hardship would bear the impact of sustained fuel price increases.

He reiterated the Makabayan bloc’s call to fast-track House Bill 215, or the Presyo Ibaba bill, which seeks to remove excise taxes and expanded value-added tax on oil products as well as other essential services and commodities.

"This is the most immediate relief measure available to Congress. Every day that this bill languishes in committee is another day that Filipino families pay more than they should for fuel, electricity, and basic necessities," Zarate said.

Beyond the measure, Zarate also called for the passage of the bloc’s proposed oil industry reform package.

These include House Bill 8125 regulating the downstream oil industry, House Bill 8126 on centralized procurement of oil, House Bill 8127 seeking the renationalization of Petron Corp., and House Bill 8128 on the unbundling of oil prices.

Zarate said the country’s vulnerability to global oil shocks is rooted in structural issues in the energy sector.

He noted that the Philippines imports up to 95 percent of its petroleum requirements and that major oil companies control the supply chain from importation to retail.

"The Middle East is the epicenter of global oil supply, and a full-scale war involving Iran, which controls the strategic Strait of Hormuz, will send oil prices to catastrophic levels. Filipino workers, farmers, fisherfolk, and commuters will bear the brunt of this crisis — not the oil giants, not the speculators, and certainly not the US and Israeli war machines that triggered this conflagration," Zarate said.

He also criticized the military actions of the United States and Israel against Iran, saying the conflict threatens global energy security.

Zarate urged the Philippine government to take stronger steps to shield Filipinos from the economic consequences of international conflicts.

He warned that inflation could worsen in the months ahead if structural reforms and immediate relief measures are not implemented.