𝗡𝗘𝗪𝗦: “Oil prices threaten PH economy” by Khitch Chino D. Buan

Published by: Keshia Gwyneth Esposa

Date Published: March 18, 2009

Time Published: 3:49 PM

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona warned on March 11, 2026, that the central bank may increase interest rates if global oil prices continue to rise and push inflation beyond the target range, amid Middle East conflict and concerns over disruptions in the Strait of Hormuz, which affect nearly 20 percent of the world’s oil supply.

He explained that while the current 10 percent increase in oil prices in peso terms is still manageable, a much larger increase could significantly affect commodity prices and inflation.

Although oil prices recently dropped to around $87.80 per barrel after discussions of releasing emergency reserves, investors remain cautious due to ongoing geopolitical tensions.

In the Philippines, transport groups said rising fuel costs are already reducing jeepney drivers’ daily income by around ₱400 to ₱500.

Despite the government’s planned ₱5,000 fuel subsidy for public utility vehicle drivers, transport groups argue that the assistance is insufficient and are calling for a provisional ₱2 fare increase.

The Land Transportation Franchising and Regulatory Board (LTFRB) also said it may allow a provisional fare increase for public transport if diesel prices reach ₱60 per liter due to the ongoing Middle East conflict.

Government officials warned that sustaining fuel subsidies may be difficult if global oil prices remain high for a long period.

REFERENCES:

[1] Fenol, J. (March 11, 2026). Rate hike possible if oil price hikes continue – BSP chief. ABS-CBN News. https://www.abs-cbn.com/news/business/2026/3/11/rate-hike-possible-if-oil-price-hikes-continue-bsp-chief-1619

[2] Agence France-Presse. (March 11, 2026). Oil prices dive as IEA eyes emergency release with Hormuz Strait in focus. Inquirer.net. http://business.inquirer.net/578611/oil-prices-dive-as-iea-eyes-emergency-release-with-hormuz-strait-in-focus

[3] Gulla, V. (March 11, 2026). Transport groups say fuel subsidy 'not enough' amid huge oil price hikes. ABS-CBN News. https://www.abs-cbn.com/news/business/2026/3/11/transport-groups-say-fuel-subsidy-not-enough-amid-huge-oil-price-hikes-1557

[4] Taguines, A. (March 3, 2026). Provisional fare hike possible if diesel hits P60/liter amid Middle East war—LTFRB. ABS-CBN News. https://www.abs-cbn.com/news/business/2026/3/3/ltfrb-provisional-fare-hike-possible-if-diesel-prices-hit-p60-liter-1131