Metro Manila, Philippines – The conflict between Israel and Iran has “no significant” effect on the Philippine economy, President Ferdinand Marcos Jr. said, even if regional tensions caused a huge spike in oil prices this week.
Marcos said this was the analysis of his economic team after their meeting to discuss the potential impact of tensions in the Middle East.
In a chance interview on Wednesday, June 25, the chief executive said that the effect on the economy “should be manageable.” But he noted that after the announcement of a ceasefire agreement between Israel and Iran on Tuesday, the price of Dubai crude oil already went down to around $69 per barrel.
“So far there is no effect. There is no significant effect on the economy,” Marcos told reporters.
Energy officer-in-charge Sharon Garin earlier said that the economic impact of the conflict is minimal so the government is not alarmed as long as the situation will not escalate.
Marcos also said that the government is monitoring “price gouging.”
“Ang dami kong nakita, nagtataas ng presyo di naman tumaas ang presyo ng langis,” he said.
[Translation: I have seen those who increased their prices but the price of oil did not go up.]
Fuel subsidies not immediate
Marcos also made it clear that fuel subsidies for public transport drivers and operators, farmers, and fisherfolk will not be triggered immediately.
“Kung hindi tumaas ang presyo ng langis [If oil prices will not go up], then there’s no need for that,” he said of distributing fuel subsidies. “We can proceed. We can do business as usual.”
Oil companies have agreed to stagger the fuel price adjustment this week.
Implemented by Tuesday and Thursday, cumulative costs for gasoline, diesel, and kerosene will go up P3.50, P5.20 and P4.80 per liter.
