Escalating fuel prices are beginning to ripple through the economy, prompting calls for tighter monitoring of commodity costs before the government considers drastic measures such as declaring a national state of emergency.

In a radio interview on Sunday, Senator Sherwin Gatchalian warned that sustained increases in oil prices could trigger “second-round effects,” driving up the cost of food and wages if left unchecked.

“Halos tatlong linggo na itong pagtaas ng presyo ng langis. Magkakaroon kasi ito ng second-round effects o spillover effects sa pagkain at suweldo. Kailangan i-monitor mabuti ang sitwasyon (It’s been almost three weeks of rising oil prices. This could lead to second-round or spillover effects on food and wages. The situation needs to be closely monitored),” said Gatchalian, who chairs the Senate Committee on Finance.

The lawmaker stressed that authorities should first track the movement of commodity prices and inflation trends before resorting to emergency declarations.

Recent data from the Philippine Statistics Authority showed inflation accelerated to 2.4 percent in February, the fastest pace in over a year, driven largely by higher prices of food, beverages, housing, and utilities.

Food and non-alcoholic beverages, which account for nearly a third of the inflation basket, posted a 1.8 percent increase, underscoring the sensitivity of household expenses to supply shocks and rising transport costs.

The pressure may intensify further as fuel prices continue to climb. Industry estimates indicate another round of increases next week, with diesel expected to rise by as much as P17.50 per liter and gasoline by up to P8.50 per liter.

Earlier adjustments announced by the Department of Energy already pushed diesel prices up by as much as P23.90 per liter and gasoline by up to P16.60 per liter for the March 17 to 23 period.

Gatchalian pointed out that the government should strengthen its oversight of petroleum pricing, including implementing “unbundling” to better determine the actual cost components of fuel products.

“Kailangan magkaroon ng unbundling para malaman ng gobyerno kung magkano ang presyo ng binibili (Unbundling is needed so the government can determine how much is actually being paid for the purchase),” he said.

Amid mounting pressure, Congress has approved a measure granting emergency powers to President Ferdinand R. Marcos Jr. to suspend or reduce excise taxes on oil if global crude prices exceed $80 per barrel for at least a month.

However, Marcos said the use of such powers remains under review, citing the complexity of calculations and the need to closely monitor global oil price trends.

“Depends on the trend. We have to watch the trends on oil prices. We just have to look. It's very hard to say because it's all speculation. We don't know how long this will last,” the President said, noting uncertainty over how long the price surge will persist.