As tensions escalate between Israel and Iran, President Ferdinand Marcos Jr. said the government is bracing for a potential spike in global oil prices by preparing fuel subsidies for public utility vehicle (PUV) drivers and other vulnerable sectors.
“We are starting already with the assumption that oil prices will in fact go up — and I cannot see how it will not. Because the Strait of Hormuz will then be blocked if [the conflict] escalates,” Marcos said in a chance interview.
The president recalled how, during the pandemic, the government supported public transportation workers in continuing their operations. “We will have to do the same for those who are severely affected by any instability in the price of oil. Yes, it’s a serious problem,” he added.
Should global oil prices hit $80 per barrel, the administration will automatically roll out subsidies for PUV drivers and farmers, he confirmed.
The Department of Energy (DOE), meanwhile, said it is closely monitoring developments in the Middle East, particularly the possible closure of the Strait of Hormuz — a critical chokepoint for oil shipments from the Gulf Region to Asia.
Oil firms in the Philippines are mandated to maintain at least a 30-day inventory to cushion against supply disruptions, the DOE added.
This week, fuel prices have already seen an uptick, with gasoline and diesel rising by P1.80 per liter, and kerosene by P1.50 per liter.