Weak peso, high oil create winners, losers

Businesses in the Philippines are seeing uneven gains and losses from the combined impact of a weaker peso and rising oil prices, according to Jose Luis Yulo Jr., president of the Chamber of Commerce of the Philippine Islands

In a Friday interview, Yulo said currency depreciation and higher fuel costs are producing mixed outcomes for firms.

“Whenever there is a devaluation of the peso and a rise in oil prices, some businesses gain while others suffer. There are winners and there are also losers,” Yulo said.

Export-oriented companies are among the main beneficiaries of a weaker peso, particularly those sourcing raw materials locally, as their goods become more competitive in global markets. Tourism-related businesses may also benefit, as a cheaper currency makes the Philippines more attractive to foreign visitors.

On the other hand, import-dependent firms face higher costs as the peso weakens, while industries reliant on fuel and transportation are burdened by rising oil prices, squeezing margins and increasing operating expenses.

Yulo warned that these cost pressures are often passed on to consumers, sometimes beyond what is necessary.

“What happens is that costs are passed on to the public. When these are passed on, some even increase prices beyond the added cost of oil,” he said.

“Prices are raised not just to recover costs from currency depreciation or higher oil prices, but also to generate additional profit. It becomes catastrophic when greed comes in and people try to make money out of a difficult situation,” he added.

He noted that rising import costs could encourage a shift toward locally produced goods, potentially supporting domestic industries and employment.

“People will no longer be able to buy imported goods and will shift to locally made products. When you buy local, you support manufacturers and workers,” Yulo said.

Still, Yulo emphasized that longer-term resilience will depend on strengthening local manufacturing, improving competitiveness and reducing reliance on imports, particularly as global shocks—from geopolitical tensions to commodity price spikes—continue to influence the country’s economic outlook.