Philippines braces transport, agri sectors amid global oil price surge

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The government is looking into targeted fuel subsidies for public transport drivers and farmers

MANILA, Philippines – Following the attacks of the United States on Iran’s nuclear sites, the Philippine government is bracing for soaring global oil prices likely to affect domestic prices, transport and agriculture sectors.

According to the Department of Energy on Monday, June 23, oil firms have “responded positively” to their request of implementing staggered petroleum price adjustments.

DOE’s officer-in-charge Sharon Garin said on Monday that they have also asked oil companies to increase the number of retail stations offering discounts to the transport sector.

Garin is set to meet officials from the Department of Transportation and the Department of Agriculture (DA) on Tuesday, June 24, to discuss targeted fuel subsidies for public transport drivers and farmers.

Iran has threatened to close the Strait of Hormuz — a crucial waterway for 20% of the world’s oil shipments — in retaliation to US attacks.

With higher oil prices, Agriculture Secretary Francisco Tiu Laurel Jr. “fertilizer would be most affected, as well as transport.”

Tiu Laurel told reporters on Monday that fertilizers for distribution the rest of the year had already been procured. The agriculture chief said he expects that impacts on fertilizer costs may be felt starting October to December.

“As far as DA is concerned, ‘yung ating ibibigay sa mga tao na-procure na lahat ‘yan until the end of the year,” he said. “‘Yung problema nila ‘yung bibilihin ng mga farmers natin sa mga retail outlets o sa mga dealers.”

(As far as DA is concerned, the fertilizers we will give to people were already procured until the end of the year. The problem is what farmers will buy from retail outlets and dealers.)

Tiu Laurel said there is existing budget for fuel subsidies for fishers, but that they are also awaiting DOE’s subsidy program to see how farmers and fisherfolk can benefit.

Lower MSRP for rice delayed

The DA is also delaying the implementation of lower maximum suggested retail price for imported rice.

“We don’t want to have any market shock so most likely by next week we will decide if we will continue or not,” Tiu Laurel said in a mix of Filipino and English.

“But the chances are, I will hold it for one month or two months,” he added.

The agriculture department first set a max SRP on rice in January at P58/kilo to encourage a dip in rice prices. It initially planned to lower the max SRP again this July down to P43/kilo. – Rappler.com