Gov’t allays oil-driven food price surge fears

Fears of a sharp rise in food prices due to a possible oil shock are being tempered by government assurances that contingency measures are already in place to cushion the impact on consumers.

“The prices presented assumed the full impact of soaring crude,” Agriculture Secretary Francis P. Tiu Laurel said. “They did not factor in government action, which we will undertake to protect Filipinos from an oil shock.”

Tiu Laurel Jr. said projections presented to the Senate—assuming crude oil prices hit $200 per barrel over six months—were based on extreme scenarios and did not account for mitigating actions.

A significant portion of the world’s urea, ammonia, and phosphate supply passes through the channel, making it a key risk point as geopolitical tensions in the Middle East have raised concerns over potential disruptions in the Strait of Hormuz, a vital route for global fuel and fertilizer shipments. 

To manage possible supply constraints, the Department of Energy has secured additional crude imports from non-traditional sources, including Russia, as part of efforts to diversify supply.

The Fertilizer and Pesticide Authority has been authorized to undertake emergency procurement, while Planters Products Inc. can expand imports as needed. 

The agency earlier brought in 120,000 bags of complete fertilizer from Vietnam.