The measures the government has taken can only delay the inevitable increase in the prices of basic commodities, even with Congress granting extra powers to President Ferdinand Marcos Jr.
Philippine Association of Supermarkets Inc. president Carlos Cabochan said that giving the President the authority to suspend the excise tax could slow price increases.
He said price movements were evident in the wet markets because the commodities they sell are delivered daily rather than stocked for long periods.
“Once harvested, they’re delivered, making them already absorb the high fuel prices,” Cabochan said.
Employers Confederation of the Philippines (ECOP) governor Butch Guerrero, who is also Philippine Chamber of Commerce and Industry national director for labor and employment, said minimum wage workers are complaining they are bearing the brunt of the oil price hikes.
Some big employers who are ECOP members are providing transportation to their workers, especially in the economic zones, and “some of them, not all, are on a four-day workweek.”
He noted, however, the four-day workweek is not a “one size fits all” solution across all industries, especially in hospital care and the service sector.
“Small businesses are those in trouble, and if you analyze the numbers, 90 percent of them are micro and small businesses, which will have a hard time providing subsidies to their employees,” he said.
No fare hike but free rides
Yesterday, President Marcos put the brakes on the public transport fare hike announced the day before, promising commuters free rides instead.
The country, which imports nearly all of its crude oil from the Middle East, has been scrambling to deal with rocketing prices triggered by the US-Israel war on Iran.
Since the hostilities erupted, the Philippines has instituted a four-day workweek for civil servants, distributed cash handouts to tricycle drivers, and seen its sole refinery open discussions to buy Russian oil.
On Tuesday, the government’s transportation regulator announced fare hikes across an array of public transport services, with the cost of a jeepney ride — used by millions of Filipinos every day — set to jump by about 8 percent.
“In my opinion now is probably not the time to raise fares for the people,” Marcos said Wednesday in walking back the increase.
Instead, the President said he had ordered the Department of Transportation (DoTr) “to launch free rides all over the Philippines” along with giving discounts on the light rail systems and toll roads.
In a statement issued shortly after, the DoTr said it would suspend the fare hikes in line with the President’s request while it “prepares” programs, including free rides.
On Tuesday, drivers and transport operators said the newly approved fare increase for public utility vehicles (PUVs) was futile against the rising fuel costs, as they announced a nationwide transport strike on 19 March.
The Land Transportation Franchising and Regulatory Board earlier approved fare increases effective 19 March, raising jeepney fares from P13 to P14, modern jeepneys from P15 to P17, ordinary buses from P13 to P15, air-conditioned buses from P15 to P18, and provincial buses from P11 to P12.
Mody Floranda, president of a local jeepney drivers’ union, said his group was unhappy with the recall decision.
“We are dismayed that the President of our country has ruthlessly recalled what his government has granted to us,” he said.
Castro: ‘No crisis yet’
Meanwhile, Presidential Communications Office Undersecretary Claire Castro said the situation has yet to reach crisis level, adding that a state of emergency is possible if commodity and fuel prices keep rising.
“That could happen, similar to what we’ve seen during typhoons and earthquakes. It has not been discussed yet, but a declaration may be made when necessary, when the situation calls for it. Especially if we see that there are those taking advantage of the situation,” Castro said.
The Trade Union Congress of the Philippines called out the President’s mouthpiece for equating calls for a declaration of a state of national emergency with fear-mongering, saying it was evidence of not being in control of the situation.
“The undersecretary missed the point. A declaration of a state of national emergency is critical for the government to expeditiously and decisively act in confronting the fast-unfolding crisis of runaway oil prices driven by escalating tensions in the Middle East,” the group statement on Wednesday read.
30-day reprieve — DTI
The Department of Trade and Industry (DTI) assured the public there would be no increase in the prices of necessities for the next 30 days, even as logistics costs continue to rise, amid efforts to prevent panic buying and protect consumers.
Trade Secretary Cristina Roque said supermarkets and groceries remain well-stocked, stressing that there is “no need for people to panic” or hoard goods.
“There is no need for the public to panic or hoard as supermarkets and groceries have sufficient stocks of necessities and commodities, with prices regulated by the DTI,” Roque said.
The DTI continued to monitor the supply and prices of essential goods amid the ongoing economic pressures affecting transport and distribution.
Despite higher logistics expenses, industry players have committed to keeping prices unchanged, at least in the short term.
Rough waters
Bank of the Philippine Islands senior vice president and lead economist Jun Neri said in yesterday’s episode of Straight Talk that the combination of high inflation and slowing growth is one of the toughest scenarios policymakers, both in the national government and at the central bank, will have to face.
“Again, very few segments of society will be spared. Again, we’re hoping the Middle East tensions will not be so intense that they will force overseas Filipino workers to come home,” he said.
“That’s a bigger issue for employment because just from the January figures alone, we already saw an uptick in joblessness. And if this situation doesn’t improve and more Filipinos, apart from the more than 1,000 that have been repatriated, continue to come home, then that’s really the biggest risk,” he said.
Thus far, Neri said the situation in the Middle East is contained, and many migrant Filipinos have stayed where they are but moved to safer areas.
“We’re already on our third week (of the war). If this drags on for another one and a half weeks, it could mean growth this year, with household consumption numbers slowing even further from our original projection of 5.1-percent growth in 2026. It could get closer to last year’s disappointing 4.4-percent expansion,” he said.
“If this drags on for three or six months, even slower numbers have to be anticipated. So, of course, we’re anticipating all of these possibilities. This is going to be more challenging for everyone, both private and public sectors, low income earners, middle-income earners, even the most prosperous in society, will be feeling all of these adjustments,” he said.
Sotto: Emergency powers near
The Senate is poised to approve a measure granting emergency powers to President Marcos to address the surge in global oil prices that has driven up fuel and commodity costs nationwide, Senate President Vicente Sotto III said.
“We will likely pass it today because we approved it on the second and third readings yesterday, as it was certified urgent by the President,” Sotto said.
The Senate on Tuesday voted unanimously to approve the bill on third and final reading after Malacañang certified it as urgent.
The measure would authorize the President to suspend or reduce the excise tax on fuel products for up to three months, potentially easing pump prices, without the usual three‑day interval between Senate readings.
Sotto said the bill will authorize Marcos to “suspend or decrease” the excise tax and no formal state of emergency is required before the President can act.
“The law provides that when oil prices reach a certain level, and depending on other possible conditions affecting our fellow citizens, he is authorized to act. Hopefully, this will also be included in the House version later,” he said.
Meanwhile, the DTI on Wednesday told the public there is “no need for people to panic” or hoard goods, assuring that there will be no increase in prices of necessities for the next 30 days, even as logistics costs continue to rise.
Market watch
President Marcos led an inspection at Agora Market in San Juan City with the Department of Agriculture (DA) and the DTI to monitor prices and ensure an adequate supply of basic goods.
“While price adjustments are understandable at a time that fuel and transport costs are rising, profiteering and hoarding are not,” Agriculture Secretary Francisco P. Tiu Laurel Jr. said.
Laurel said current monitoring showed a sufficient supply of rice and other food items. The government has also secured farm inputs and is helping farmers manage production costs and prevent spikes in consumer prices.
The DA and DTI said they are consolidating nationwide price data and are prepared to impose price ceilings on necessities and prime commodities if unreasonable price increases are reported.