Marcos orders fuel, fertilizer watch as Mideast tensions roil markets
PRESIDENT Ferdinand Marcos Jr. has ordered relevant government agencies to monitor the situation in the Middle East. The Departments of Energy, Agriculture, and Transportation said they are ready to respond in case tensions escalate in the region.Photo from the Presidential Communications Office
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Amid growing tensions in the Middle East and the resulting oil price hike, President Ferdinand Marcos Jr. has ordered key government agencies to closely monitor the situation, citing potential impacts on the Philippine economy.
In a Palace briefing on Tuesday, Presidential Communications Office Undersecretary Claire Castro said the Department of Energy (DOE) is tracking developments in the region, particularly the possibility of the Strait of Hormuz being closed — a move that could disrupt oil shipments from the Gulf to Asia.
Castro noted that Philippine oil companies are required to maintain a 30-day fuel reserve to prepare for supply disruptions.
“If the price of crude oil increases by more than 80 US Dollar per barrel, the aid for fuel for public transport and fisherfolk will be triggered and the DA and DOTr will also need to be notified regarding this aid,” she said.
President Marcos also instructed government agencies to explore financial aid and other alternatives in case of price surges in basic goods.
Should the crisis worsen, Castro said the DOE will engage in talks with oil firms to maintain inventory and stagger price hikes as much as possible.
“If the increase is really big and unavoidable, the DOE will negotiate with the oil companies to maintain inventory levels and spread out the oil price adjustments as much as possible. That is of course voluntary and rely on good negotiation,” Castro said.
Oil firms raised pump prices on Tuesday — gasoline and diesel rose by P1.80 per liter, while kerosene went up by P1.50 per liter.
On potential fertilizer supply disruptions — given that most imports also come from the Middle East — Castro said DA Secretary Francisco Tiu Laurel Jr. assured that contingency plans are in place.
“We spoke with DA Secretary Laurel a while ago and he said that we are ready and if this happens, we can take [fertilizers] from other parts of the world that are close to us, like Brunei,” she said.
The DA does not expect long-term issues unless major sea lanes are blocked.
