PhilGov monitors Israel-Iran conflict, prepares for oil price hikes

The Philippine government is closely monitoring the conflict between Israel and Iran, preparing for potential spikes in global oil prices and disruptions to fertilizer supplies.

President Ferdinand Marcos Jr. has directed agencies to prepare additional aid packages if crude oil prices rise significantly, with fuel subsidies automatically triggered if prices exceed $80 per barrel as mandated by the TRAIN Law.

Oil companies are required to maintain a 30-day inventory of fuel, and the Department of Energy (DOE) is coordinating with these firms to manage price adjustments and ensure stable supply, while exploring alternative sourcing options such as Brunei for fertilizers if imports from Qatar become problematic due to potential disruptions in Gulf shipping.

The DOE's Oil Industry Management Bureau attributes recent fuel price hikes to global factors including improved US-China trade relations and stalled nuclear talks between the US and Iran.

Department of Energy Officer-in-Charge Sharon Garin said the government will continue to monitor fuel prices closely, coordinating with oil companies to manage any local price adjustments and ensure minimal disruption to the economy.

The Department of Agriculture is ready to import fertilizers from other countries if needed, while the DOE will hold dialogues with oil companies to maintain inventory levels and spread out potential price adjustments as much as possible.

Palace Press Officer Claire Castro emphasized that immediate assistance and interventions are in place should crude oil prices rise significantly, potentially affecting inflation and consumers' disposable income.