MAJOR Philippine business groups on Monday urged the government to adopt a mix of supply diversification, targeted subsidies, and cost-control measures to shield consumers and the broader economy from volatile global oil prices, as tensions in the Middle East threaten to disrupt supply chains.
In a joint statement dated March 30, 2026, the Federation of Philippine Industries, Makati Business Club, Management Association of the Philippines, Philippine Chamber of Commerce and Industry, and the Federation of Filipino-Chinese Chambers of Commerce and Industry Inc. said they are coordinating with the government to mitigate risks from rising fuel costs and ensure economic stability.
The groups cited discussions convened by Finance Secretary Frederick D. Go, noting that “volatile global oil prices pose serious threats to our nation’s economic stability and the welfare of our people.”
Supply diversification, price stability
Among the key proposals is securing oil supply through government-to-government procurement deals with non-traditional partners such as Russia, Indonesia, and India. The groups said diversifying sources could help cushion the country from supply disruptions linked to geopolitical tensions.
They also pushed for maintaining steady interest rates and reducing non-fuel costs to prevent spillover effects on basic commodity prices.
Targeted aid for transport sector
To soften the impact on vulnerable sectors, the business groups recommended targeted subsidies for public transport operators, including jeepneys and buses, to avoid fare hikes while fuel prices remain elevated.
“Direct support to marginalized transport groups can cushion the impact of rising fuel costs without triggering fare increases,” the statement said.
Push for local industries
The groups also emphasized a “buy local” approach, encouraging support for Philippine-made products to protect jobs and enhance resilience against global supply chain shocks.
Private sector commitments
In parallel, the business groups committed to a “whole-of-nation” response, pledging measures within their own operations to reduce fuel demand and improve energy security.
These include implementing aggressive energy-saving initiatives across corporate facilities, adopting flexible work arrangements to cut transportation fuel use, and promoting a culture of conservation among employees.
They also underscored the need to accelerate investments in renewable energy, particularly solar power, to reduce dependence on imported fuel over the long term.
Ongoing dialogue
The groups said they will continue working with the government to navigate external shocks, stressing that “unity is our greatest strength in navigating global instability.”
The joint statement comes as rising geopolitical tensions drive up oil prices and heighten risks of supply disruptions, adding pressure on inflation and business costs. / KOC