PCG cutting routine patrols due to oil price surge sparks 'national concern'

The Philippine Coast Guard (PCG) has to cut routine patrols in some parts of the country due to the persistent oil price surge, sparking a “national concern” given the continuous escalating maritime dispute between the Philippines and China over the West Philippine Sea, a senator warned Saturday.

PCG’s budget this year was raised to P42.5 billion from the initial proposal of P35.4 billion following an augmentation by the Senate to expand its maritime patrol capability, particularly in the WPS.

The current spending increased significantly from P33.3 billion in the 2025 budget. However, despite the substantial boost, the PCG’s effort to enhance monitoring and patrol visibility in Philippine waters amid heightening tensions with China will be constrained by skyrocketing fuel costs.

Senator Win Gatchalian, head of the Senate ad hoc committee formed last week to discuss the government’s response to the Middle East crisis, visited the remote Philippine outpost of Pag-Island in the WPS on Friday, ahead of the panel’s first hearing on Tuesday.

Gatchalian said he was informed by PCG spokesperson for the WPS, Commodore Jay Tarriela, that the rising fuel costs have hampered PCG routine patrol operations primarily because the PCG’s fuel consumption allocation was just programmed at $60 per barrel until year-end.

“Now, [the Dubai crude oil has already reached over] $100 per barrel. So, meaning, they will cut patrols in different parts of the country. And if we cut patrols, there is a national security concern because they can no longer safeguard our waters,” he said in Filipino in a radio interview.

The DAILY TRIBUNE reached out to Tarriela to inquire whether the WPS will be affected by the reduced routine patrols, but he has yet to respond as of press time.

Gatchlian, who also heads the Senate finance committe, said the chamber will “reshuffle” the budget of several departments to ensure that the PCG, and other line agencies, have adequate funding for patrol operations amid the persistent presence of Chinese vessels in the WPS and neighboring waters.

Specifically, allocations for projects and activities that require unnecessary spending, such as, among others, travel and training or the Lakbay-Aral, will be realigned to departments that need supplemental funding.

The estimated savings that can be generated from different programs of several agencies are pegged to approximately P90 billion, according to the Finance panel head.

“It’s really important to save money because if the price of petroleum further increases, we will have to look for funds to cover the petroleum price increase. That is why we are reshuffling the budget now,” he explained.

“For example, traveling. If there are trainings or Lakbay-Aral, those should be put on hold for now. The training fund, that's another thing. For now, training should be conducted online because training expenses are also expensive,” he added.

The Department of Finance had warned that the government is poised to lose P136 billion in revenue through the government’s plan to suspend excise tax and value-added tax on petroleum products. The projected revenue foregone covers only eight months, from May to December.

According to DOF Undersecretary Karlo Adriano, this shortfall accounts for 0.45 percent of the country’s gross domestic product and will prevent the government from incurring a larger deficit, leaving several crucial programs unfunded.

Professor Emmanuel Leyco, president and chief economist of Credit Rating and Investors Services Philippines Inc., projected that even if the United States-Israeli war on Iran came to an end earlier than expected, many oil firms in the Middle East had already been destroyed by airstrikes. This suggests that the global oil disruption driving fuel costs to unprecedented levels will not be automatically resolved with the end of the war.

Leyco said that six months is still insufficient before oil production and operations return to normal.

Meanwhile, former DOF chief Margarito Teves believed that the administration should first conduct a dry run, with the excise tax suspension lasting no more than three months, as the state of the conflict may still change and ease in the months ahead.

Both economists forecast that the Philippine economy is at risk of slowing down due to the anticipated higher inflation and lower gross domestic product.

The proposal granting President Marcos Jr. the power to reduce or suspend the excise tax was already approved by Congress and now awaits Malacanang’s approval.

Marcos is adamant about signing the proposed law, which he certified as urgent, unfazed by the threat of economic slowdown.