GLOBAL EXTERNAL SHOCKS seem to multiply each day. The hardest, or what we thought as the hardest one, came from the tariffs that the Trump administration would impose on its allies and non allies, which around the world are just preparing for. And now, the escalating conflict, although Trump claims that a ceasefire had been reached, between Israel and Iran.
Should either country renege on its avowed ceasefire then the chance that Hormuz Strait, where most goods and chemicals pass through before heading to international waters, would be closed would exacerbate the current problems of supply chains that had since lingered from the Covid 19 pandemic.
Already, prices of petroleum products are expected to soar — including LPG (which households and industries/commerce use for cooking) — which would trigger increases in power, food products and services, prompting labor groups to caution about the further erosion of incomes especially of the middle and lower income groups.
‘Should either country renege on its avowed ceasefire then the chance that Hormuz Strait … would be closed would exacerbate the current problems of supply chains that had since lingered from the Covid 19 pandemic.’
FURTHER STRAIN
Two labor groups — the Federation of Free Workers and the Sentro ng mga Nagkakaisa at Progresibong Manggagawa — warned yesterday that the continued increase in fuel prices might further strain the already stretched budgets of Filipino workers, particularly minimum wage earners.
FFW President Sonny Matula said rising oil prices would lead to higher transport fares and more expensive basic goods — burdens that will surely hit low-income workers the hardest.
“The increase in fuel prices underscores the urgency of a substantial wage adjustment. The proposed P100–P200 nationwide legislated wage hike now becomes not just a demand but an emergency or a lifeline to survive,” he told Business Mirror.
HARDEST HIT
Currently, the minimum wage in Metro Manila stands at P645 —the highest in the country— while the lowest is in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) at P361, highlighting the wide gap in regional pay and the need for a unified wage hike.
Matula asked the government to provide direct assistance to vulnerable sectors, especially workers in the transport and agricultural industries, who are among the hardest hit by the ripple effects of the ongoing conflict between Israel and Iran.
He added that the Department of Labor and Employment (DOLE) must ensure that no worker is left behind and that a responsive safety net is in place to protect those affected by inflationary shocks.
Matula also urged the government to scale up training and support for fuel-impacted sectors to help them transition, adapt, or supplement their incomes.
INTERVENTIONS
Sentro Secretary General Josua Mata urged the Marcos administration to go beyond issuing advisories and to consider regulatory intervention to prevent unjustified increases in oil prices.
Citing Republic Act No. 8479 or the Oil Deregulation Law, he said, the government is authorized to act when domestic pump prices become excessive or when there are signs of market abuse
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“After an initial spike, global oil prices have already stabilized. Recent geopolitical shocks were swiftly contained, and [Organization of the Petroleum Exporting Countries] has the capacity to keep supply steady. I see no justification for keeping domestic oil prices high,” Mata said.
SPIKING FUEL COST
The Department of Energy (DOE) on Monday confirmed that oil companies had initially planned to raise prices by as much as P5 per liter this week, but later agreed to stagger the increases to ease the burden on consumers.
The Department of Trade assured that local sardine manufacturers have promised to keep their current prices for canned sardines (a basic item for low income consumers) debunking reports that the sardine canners have been seeking price hikes.
“We appreciate the industry’s commitment to the consumer, especially with the economic pressures families are facing today,” said Trade Secretary Ma. Cristina A. Roque.
“Their decision not to increase prices supports President Ferdinand R. Marcos, Jr.’s directive to keep basic goods affordable and ease the daily burden on consumers,” she added.
The manufacturers’ commitment follows her June 23 meeting with members of the Canned Sardines Association of the Philippines, after news reports said the industry planned to request an increase in the suggested retail prices of 155-gram sardine cans from P21 to P24 because of rising production costs.
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Among the attendees were Chattrade, Mega Prime Foods, Inc., PERMEX, Universal Canning, Inc., and Century Pacific Food, Inc.