PCCI Sounds the Alarm: Philippine Business Chamber Urges Government to Deploy All Defenses Against Incoming Oil Shock
The Philippine Chamber of Commerce and Industry is urging the government to activate all available economic defenses as the Middle East war threatens to unleash a devastating oil shock on the Philippine economy. PCCI warned that financial markets present a major vulnerability, with investors gravitating toward safe-haven assets.
The country's largest business group called on economic managers to deploy monetary tools to protect the peso, sustain liquidity, and maintain investor trust amid heightened volatility. With Brent crude already jumping 9% in a single session to nearly $80 per barrel, the risks to the Philippines — a net oil importer — are significant and immediate.
PCCI's concerns go beyond fuel prices. Higher energy costs ripple through the entire economy — from manufacturing and transportation to food production and retail. Small and medium enterprises, which make up 99% of Philippine businesses and employ the majority of workers, are especially vulnerable to sustained price shocks.
The chamber's call comes alongside warnings from multiple economists that persistent oil price strength could push inflation to the ceiling of the BSP's 2-4% target by the second half of 2026, if not earlier. The peso is also at risk from dollar strengthening as global risk aversion increases.
The government's options include strategic petroleum reserve releases, temporary fuel subsidies, accelerated renewable energy deployment, and coordinated monetary policy responses. But with the conflict showing no signs of de-escalation and the Strait of Hormuz effectively paralyzed, PCCI is essentially telling the government: prepare for the worst.
Source: Context.ph
