MANUFACTURING firms in the country are not yet showing signs of workforce reductions despite the recent spike in fuel prices, a top official of the Federation of Philippine Industries, Inc. (FPI) said on Thursday, March 19, 2026.
“Just generally, we are not getting information that the manufacturers are actually, you know, letting go of people at this point in time,” FPI chairperson Elizabeth Lee said on the sidelines of the FPI Summit 2.0 in Bonifacio Global City.
“I think the government itself is, thank God, doing what it needs to do to safeguard us, the citizens, from these high oil prices.”
The government earlier announced the distribution of fuel subsidies to public utility vehicle drivers to help them cope with rising fuel prices.
It is also looking at procuring as many as two million barrels of oil to increase the country’s buffer stock.
Domestic oil prices went up by more than P20 per liter this week alone as global oil prices rose due to the conflict in the Middle East.
For gasoline products, the increase amounted to P12.90 to P16.60 per liter; for diesel, P20.40 to P23.90 per liter; and for kerosene, P6.90 to P8.90 per liter.
Lee said that while rising oil prices and the depreciation of the peso will have serious effects, these do not automatically lead to the closure of firms.
“Manufacturing actually is mid- to long-term. It’s a long-term thing. It’s an ongoing business venture. So, it’s not something like if there is a spike in oil prices, you’re going to, you know, shut down or close your factory. It doesn’t work that way,” she said.
Lee cited the need to “tighten belts” and implement measures to reduce the impact of rising fuel prices and peso depreciation.
“The only thing now is for, let’s say, businesses and manufacturers (to) actually tighten belts right now because that’s expected,” she added.
“Tightening your belt in terms of efficiencies. We have no choice. We have to do it right now. But it’s not letting go of people. Not yet. It’s, you know, it’s really too soon to even say that.”
Lee, however, expressed hope that the conflict would be resolved soon.
“It really depends on the duration. So, if the duration of this war is not prolonged more, then I think that’s okay. The plans can still continue. But if it gets a bit more prolonged, then that’s when we’re going to... if it’s going to be a year, we might be in trouble already,” she said. / PNA