Global oil prices surged as Brent crude settled at $101.21 a barrel on Wednesday, September 9, 2026, following attacks on ships and energy infrastructure in the Middle East that threatened supplies through the Strait of Hormuz.
Cebu business groups warned that the rising oil prices threaten business survival, jobs, and margins, prompting the Mandaue Chamber of Commerce and Industry to call for the suspension of excise taxes and value-added tax on fuel.
Entrepreneur Steven Yu projected domestic inflation at 5.5 percent to 6.5 percent while anticipating that the Bangko Sentral ng Pilipinas will keep interest rates steady for the rest of the year.
BUSINESSES in Cebu are facing a fresh cost squeeze as global oil prices breached $100 a barrel, raising the prospect of higher expenses for transportation, logistics, production and day-to-day operations.
The increase could be particularly difficult for micro, small and medium enterprises (MSMEs), which have limited room to absorb higher costs without passing them on to customers, according to the Cebu Chamber of Commerce and Industry (CCCI).
Higher fuel prices are expected to ripple through the local economy as businesses pay more to move raw materials and finished goods, while employees and consumers contend with higher transportation costs.
“When oil prices go up, the impact is felt far beyond the pump,” CCCI said, adding that higher fuel costs could eventually push up prices of food, goods, electricity and other business inputs.
For Cebu enterprises, the concern extends beyond fuel bills to pressure on margins and consumer spending.
Businesses may have to absorb the additional costs, raise prices or cut operating expenses, including by scaling back operations and jobs, the chamber said.
“This is why CCCI believes that the impact of higher oil prices must be looked at not only in terms of inflation, but also in terms of business survival and jobs,” it said.
Tax relief sought
The Mandaue Chamber of Commerce and Industry (MCCI) raised similar concerns, saying businesses are already dealing with power interruptions, a weaker peso, sluggish tourism and the prospect of another wage increase.
MCCI warned that another sharp rise in costs could hurt competitiveness and economic growth while increasing pressure on businesses and households.
The chamber said sustained cost increases could lead some companies to reduce their workforce or close.
MCCI called on the National Government to suspend excise taxes and value-added tax on fuel as a way to ease the burden on businesses and consumers.
“We strongly recommend the suspension of the excise tax and the VAT to regain economic balance,” MCCI said.
CCCI also called for government measures to cushion businesses and consumers if oil prices remain elevated, particularly MSMEs with less capacity to absorb additional expenses.
It pushed for longer-term steps to strengthen energy security and reduce the country’s dependence on imported fuel.
Entrepreneur Steven Yu said Cebu businesses are also vulnerable to movements in the US dollar, which could further increase the peso cost of imported fuel and other inputs.
“Any disruption and uncertainty in the Middle East will cause oil prices and the US dollar to strengthen further, exacerbating the peso woes,” Yu said.
Inflation pressure
Yu expects domestic fuel prices to rise but said he hopes prices will ease toward current levels in the fourth quarter.
He projected inflation at 5.5 percent to 6.5 percent, although he expects the Bangko Sentral ng Pilipinas to keep interest rates steady for the rest of the year because current price pressures are largely supply-driven and linked to external developments.
Despite the challenges, Yu said the Philippine economy remains resilient and urged businesses to “hold the fort,” expressing optimism that conditions could improve in 2027.
For firms dependent on delivery fleets, logistics, tourism and other transport-intensive activities, higher fuel prices could directly squeeze operating margins. Retailers, manufacturers and food businesses could also face higher freight and input costs.
The oil shock comes as fighting between the United States and Iran intensifies and threatens energy shipments from the Middle East.
Expensive barrel
Brent crude, the international benchmark, settled at $101.21 a barrel Wednesday, Sept. 9, 2026, up 3.4 percent. US West Texas Intermediate crude settled at $96.05.
It was Brent’s first close above $100 since July.
The increase followed attacks on ships and energy infrastructure in the Middle East, adding to concerns over supplies moving through the Strait of Hormuz, a major route for global oil shipments.
For Cebu businesses, the immediate task is to manage another increase in operating expenses while consumers remain sensitive to higher prices. / KOC