Ceasefire eases oil prices, local costs still uncertain

Global oil prices eased after Iran confirmed a ceasefire following President Donald Trump’s announcement, giving temporary relief to markets that had recently surged above $110 per barrel. But analysts warned that Filipinos should not expect immediate drops at the pump or in household costs.

“Financial markets went up, and oil prices softened. It was doing around $110; now it’s below $100. It’s a relief,” First Grade Finance CEO Astrolito del Castillo said the market reaction was positive but short-lived at the Management Association of the Philippines General Membership Meeting on Wednesday, 8 April at Shangri-La The Fort, Taguig City. 

However, del Castillo emphasized that stabilization would take time. He explained that local supply chains have been disrupted, and the effects of global price shifts on Philippine consumers will not be felt immediately. “Things won’t be solved overnight. Prices here in the Philippines won’t soften immediately, and the supply chains were affected,” he said.

He cautioned that while weekly P20-per-liter increases might be behind, the country remains vulnerable. If the ceasefire breaks, prices could spike sharply. Del Castillo urged households to remain prudent with spending, and stressed the need for structural reforms to strengthen energy and agricultural self-sufficiency.

Regarding the movement of oil vessels through the Strait of Hormuz, a critical chokepoint in global oil transport, del Castillo said the Philippine government’s measures have helped prevent immediate disruptions. 

“You won’t feel it immediately. Many ships got through, and it’s a good effort by the government. But just because permits are in place doesn’t mean prices will drop immediately. We remain hostage to world crude prices.”

Del Castillo concluded with a call for preparedness. “We need a crisis management system that works automatically. Other countries didn’t panic because both their governments and citizens were prepared. We should focus on economic resilience rather than politics.”