DTI: Fuel crisis strains logistics

The Middle East war is straining business logistics, the Department of Trade and Industry (DTI) acknowledged on Wednesday, but it assured the public that efforts are underway to stabilize prices.

“To be honest, we can see that there is already, or there soon will be, an impact of the rising fuel costs on logistics because of the Middle East war. The effects are tremendous, especially on logistics costs,” Trade Secretary Cristina Roque said in an interview on DAILY TRIBUNE’S digital show, Straight Talk.

Logistics is defined as the strategic management of the efficient flow, storage, and transportation of goods, services, and information from their origin to consumption.

Oxford Economics earlier warned that the Middle East crisis has dampened global demand, which could slow volume growths and hit Philippine and Vietnamese exporters the hardest, given their fuel-dependent manufacturing and logistics sectors.

With logistics costs rising, exporters are among the sectors bearing the brunt. In response, Roque said the DTI has launched an export business fund to support them.

“We set aside P3 billion for this, which exporters can loan from the DTI Small Business Corporation. They can go to sbcorp.gov.ph, and they can apply online. The P3 billion can assist exporters in growing their businesses and to make sure that they can buy raw materials,” Roque said.

Despite the challenges, she noted that exports remain steady, underscoring the need for continued government support.

“If they need more funds, loans up to P5 million are available, no collateral, and they have one year of no payment of principal and interest. I encourage them to apply online and take advantage of this loan,” she said.

When it was launched last March, the DTI-SBCorp noted the program arrived amid robust export performance.

Data from the Philippine Statistics Authority showed that total exports from January to February 2026 reached $14.47 billion — up 8.3 percent from the same period last year, the highest level for the first two months since 1991.

Roque said the financing program is designed to help exporters maintain their growth and tap into new markets. The loan facility will support working capital, production expansion, and equipment modernization, enabling businesses to strengthen competitiveness and integrate into global value chains.

The DTI said the initiative complements broader efforts to expand market access through free trade agreements and other trade arrangements, which now cover more than 70 percent of Philippine exports.

No price surge — for now

Meanwhile, Roque cautioned the government cannot guarantee that all basic goods manufacturers will hold their prices indefinitely amid the soaring fuel costs, though some have pledged to maintain their prices through 16 April or longer.

“Of course, we cannot assure the public that there will be no price increase after 16 April. Some of the manufacturers have assured us up to the end of the month, but not all. We will keep updating the public. Next week, there will be a meeting with the manufacturers. But for now, there is no need to hoard and no need to panic,” she said.

“For the 205 SKUs, there is no price increase, despite the increase in fuel cost. This includes canned sardines, processed meat products, canned goods, coffee, dairy products, cup noodles, among other things available in groceries and supermarkets,” she added.