The Philippine government has disbursed P125.2 billion in response to economic pressures arising from the ongoing Middle East conflict, according to Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan.

Speaking at a Monday Senate Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) Committee hearing, Balisacan said the funds were released to various government agencies, including subsidies for the transport and agriculture sectors.

“From the continuing 2025 appropriations, and the 2026 appropriations, we could identify a P238 billion amount of resources for the intervention. Half of that has actually been released to the agencies as of April 1—that’s P125.2 billion,” Balisacan said, citing a report by the Department of Budget and Management.

Balisacan said part of the P125.2 billion covers fuel subsidies, financial assistance, and logistics support for the agriculture sector. Similarly, fuel subsidies, cash aid, and fee reductions have been extended to the transport sector.

The funds are also being used to secure oil and electricity supply for the energy sector, as well as for repatriation and reintegration efforts for overseas Filipino workers.

According to Balisacan, the remaining balance from the intervention fund may still cover ongoing measures until June, but could be stretched thin if the Middle East conflict persists through the end of the year.

“The remaining part of that is P113.4 billion. If we look at these numbers versus the first three months, April to June, I think we can safely cover the short-term measures as long as our approach is targeted,” he told the PROTECT panel.

“If the tension in the Middle East will extend to the next six months—that is July to December—the demand for resources will be much greater, and we’ll have to figure out how to source that out,” he added.

The conflict in the Middle East has driven domestic fuel price increases, with the Bangko Sentral ng Pilipinas (BSP) warning that higher fuel costs could translate into broader price hikes for goods and services if the conflict persists, further eroding Filipino purchasing power.

Balisacan earlier warned that, under DEPDev’s worst-case scenario, inflation could spike to 14.3 percent if global crude oil prices remain at $200 per barrel for 180 days. Under the same scenario, DEPDev estimates domestic diesel prices could surge by 160.05 percent by April to P154.06 per liter, from a baseline estimate of P59.24 per liter.

“As you know, almost two thirds of our economy is dependent on domestic ones and household consumption. And so, when the purchasing power is reduced, the impact is quite substantial,” he said at an earlier Senate panel.

As of press time, crude oil is trading at around $102–$105 per barrel.