THE ADVERSE EFFECTS of the Middle East crisis to a country that is highly-dependent on imported fuels goes beyond oil prices.
In the Philippines where petroleum products are being sold twice as much as compared to its price two weeks ago, the cost of basic commodities have started to peak to the detriment of the minimum wage earners.
According to the Philippine Amalgamated Supermarkets Association Inc., rising global oil prices driven by tensions in the Middle East could eventually lead to higher prices of basic goods in the local market.
Steven Cua, president of the supermarkets group, said the movement in oil prices usually affects the cost of nearly all products.
“Kapag gumalaw ang presyo ng krudo, in any country, I guess, and you import the way we do, talagang gagalaw ang presyo ng lahat na bilihin. Labor, electricity, fuel, kapag gumalaw yan, galaw lahat ng presyo yan, sigurado,” Cua was quoted as saying in an interview with GMA Integrated News’ Unang Balita.
“Lahat ng produkto maapektuhan,” he added.
NO PANIC-BUYING
This comes as Cua urged the public not to resort to panic buying, which according to him could quickly deplete stocks and subsequently trigger an artificial shortage.
According to Cua, shortage — artificial or otherwise — affects the law of supply and demand, even as he explained that limited stocks could alter the price of commodities in the market.
“Kaya nga huwag tayong mag-panic buying. When we do that, nakatulong tayo sa pagtaas ng presyo. Relax lang tayo,” Cua said.
“If you want to buy, maybe buy 15% more than what you normally do. You want to be on the safe side pero don’t buy more. Let’s give time for the production people to come up with more stocks,” he added.
DISRUPTED SUPPLY
According to Cua, consumers may not feel the immediate impact yet as the Philippines currently has around 50 days’ worth of fuel supply.
However, the real time situation proves otherwise as the price of petroleum products have already doubled — and may continue to rise for as long as oil-exporting countries in the Middle East finally resume global distribution.
With soaring fuel costs, provinces are experiencing supply disruptions mainly because delivery trucks are affected by fuel limitations – “Itong problema sa probinsya, delivery, distribution… kaya siguro yung ibang probinsya, medyo mas maagang mawawalan ng certain stocks,” he added.
EXPENSIVE WATER
Starting next month, consumers would be paying more for their water consumption after the Metropolitan Waterworks and Sewerage System approved the implementation of the Foreign Currency Differential Adjustment (FCDA) for the second quarter of 2026 for both Manila Water Company Inc and Maynilad Water Services Inc.
According to the MWSS, the FCDA is a tariff mechanism that allows concessionaires to recover losses or give back gains from fluctuations in foreign exchange rate, from foreign-denominated loans by concessionaires.
The MWSS said for Maynilad, it has approved an upward tariff adjustment by an average of P0.09 per cubic meter. For Manila Water, the tariff shall be adjusted upward by an average of P0.04 per cubic meter, the regulator said.
Maynilad’s adjustment translates to an increase in the water bill starting April of P0.27, P1 and P2.07 for consumption of 10 cubic meters or less, 20 cubic meters and 30 cubic meters, respectively.
ELECTRICITY COST
Not to be left behind is the cost of electricity, which is expected to increase following the upward movement of global fuel prices due to the ongoing conflict in the Middle East
Citing projections from the Independent Electricity Market Operator of the Philippines (IEMOP), the Energy Regulatory Commission (ERC) said electricity prices in the Wholesale Electricity Spot Market (WESM) could climb should global supply disruptions persist.
The simulations took into consideration scenarios involving increases in international coal, oil, and liquefied natural gas (LNG) prices and supply constraints. This indicates that higher fuel costs could push WESM prices higher as generators pass this on in their market offers.
MINIMUM FARE HIKE
The Department of Transportation (DOTr) earlier hinted at the possibility of fare increase amid soaring oil prices stemming from the conflict in the Middle East,
Transportation Secretary Giovanni Lopez said the Land Transportation Franchising and Regulatory Board (LTFRB) has already submitted a recommendation. He however told the agency to “recompute” and “re-crunch” the numbers.
“I told (LTFRB) chairman Vigor (Mendoza II), study this again, you have to re-crunch the number especially on what is going on right now. We have to remember, the rise in fares is accompanied by the rise in the prices of goods and services,” Lopez said.
Asked if there is already a decision to increase fares, Lopez replied in the affirmative, but stressed that the final numbers are still being computed.
