Philippines to roll out fuel aid if Mideast tensions escalate
MANILA, Philippines — President Ferdinand Marcos Jr. is eyeing the deployment of fuel subsidies to cushion the impact of rising oil prices triggered by escalating tensions between Israel and Iran.
In a media interview on Wednesday, June 18, Marcos warned that oil prices are certain to rise due to instability in the Strait of Hormuz.
The Strait of Hormuz connects the Persian to the open seas. It is one of the most important passages in the world for the flow of oil trade, with millions of oil barrels passing through the strait per day. A blockade by Tehran would likely trigger global fuel price spikes.
Marcos said that should this happen, the government will provide fuel subsidies. He likened it to the situation in the pandemic, when the government provided fuel subsidies to public utility vehicles.
“Now we will have to do the same for those who are severely affected, stakeholders, by any instability in the price of oil. Yes, it's a serious problem,” Marcos said in an ambush in Quezon City.
Emergency measures under review. Malacañang had said the Department of Energy (DOE) is closely monitoring developments. Under existing regulations, oil companies are required to keep a 30-day inventory for fuel.
If the situation worsens, the DOE will appeal to oill firms to maintain their inventory levels and stagger their oil price adjustments, Palace Press Office Claire Castro said.
Should crude oil prices spike to more than $80 per barrel, it would trigger government mechanisms for fuel and transport subsidies for fisherfolk and public transport.
The Department of Transportation and Department of Agriculture will be advised to implement the measures should the need arise.
Fuel prices are already in an upwards trajectory starting June 17. Gasoline, diesel and kerosene saw increases nearing P2 per liter.
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