Business group warns of impact ‘worse than COVID’ amid fuel crisis

Metro Manila, Philippines –  A business group is warning of a potentially deeper economic impact than the COVID-19 pandemic as rising fuel prices threaten to drive up costs and slow down consumer spending.

Donald Lim, president of the Management Association of the Philippines, said the situation could hit both households and businesses harder if left unchecked.

“COVID medyo naka-adjust tayo pero parang mas nakakatakot ito sa COVID eh,” Lim said in an interview with NewsWatch Plus during the Asia’s Influential Leaders Award 2026.

[Translation: During COVID, we were able to adjust somehow, but this feels more alarming than COVID.]

He warned that rising fuel prices could trigger a chain reaction.

“And at the same time, if prices go too high and food costs will go up also, ang mga mamamayan… may iipit sila eh,” he said.

[Translation: If prices go too high and food costs rise, ordinary Filipinos will be squeezed.]

Lim said early signs of economic slowdown are emerging, with some companies shifting back to work-from-home arrangements to cut costs.

“So walang lalabas, walang gagasto… that would slow down our economy as a whole,” he added.

[Translation: If people don’t go out and don’t spend, it will slow down the entire economy.]

He warned that reduced mobility and spending could hit the retail sector, further dampening economic activity.

Lim urged both the government and businesses to act quickly and prepare for worst-case scenarios.

“So I think we need to take more aggressive action… at the very least, all companies should really take active measures,” he said.

He added that while some are hesitant to raise the alarm, immediate action is needed as the situation could worsen in the coming weeks.

“I think after Holy Week, that’s going to be…” Lim said, trailing off, as he emphasized the urgency of preparing for the next phase of the crisis.

The government has placed the country under a national energy emergency to allow faster response measures, including securing alternative fuel sources and stabilizing prices.

At the center of the crisis is the Strait of Hormuz, a critical global chokepoint between Iran and Oman through which about 20 percent of the world’s oil supply passes.

Ongoing conflict involving Iran has disrupted shipments through the strait, driving up global oil prices and raising concerns over supply shortages.