Government prepares Philippines fuel subsidy relief as conflict threatens global supply, triggers local pump price hikes.
Philippines Fuel Subsidy to Be Activated if Crude Exceeds $80 per Barrel
MANILA, Philippines — With global oil markets on edge due to escalating tensions between Israel and Iran, President Ferdinand Marcos Jr. has instructed key agencies to prepare for the possible rollout of a Philippines fuel subsidy to protect vulnerable sectors from surging oil prices.
Speaking to media on Wednesday, June 18, Marcos said the situation in the Strait of Hormuz, a vital global oil chokepoint, could worsen and result in major supply disruptions. A blockade by Iran would send oil prices soaring worldwide.
“It’s a serious problem,” the President stated. “Now we will have to do the same [subsidy approach] for those severely affected… just like what we did during the pandemic.”
Fuel Aid Measures to Shield Transport, Fisherfolk
Palace Press Officer Claire Castro confirmed that government aid for transport and fisherfolk will be triggered once crude oil prices breach $80 per barrel. The aid will prioritize public transport drivers and fisherfolk, with implementation coordinated by the Department of Transportation and Department of Agriculture.
The Department of Energy (DOE) is also coordinating with oil companies to maintain their 30-day fuel inventory and may request firms to stagger price increases if the situation worsens.
Fuel prices in the Philippines have already increased by nearly ₱2 per liter as of June 17, with more hikes likely if the Iran-Israel conflict escalates.
Government Moves to Stabilize Economy Amid Price Surges
The Marcos administration emphasized that the Philippines fuel subsidy is part of a broader effort to maintain economic stability and protect low-income sectors. With fuel prices linked to transport and food inflation, early intervention is seen as crucial.
“We are watching the situation closely so we can act quickly,” Castro said.
In times of global crisis, swift and targeted government response can help shield ordinary Filipinos from the worst shocks.
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