Salceda Warns: Brace for a Major Oil Price Hike — Iran Conflict Could Send Gas Prices Soaring in the Philippines

Rep. Joey Salceda, chair of the House Committee on Ways and Means, is warning Filipinos to brace for a potentially massive spike in fuel prices following the US-Israel military strikes on Iran. With Iran being one of the world's top oil producers and the Strait of Hormuz — through which 20% of global oil passes — now a conflict zone, the economic fallout could be severe.

Salceda urged the government to immediately prepare fuel subsidies and consider temporary excise tax cuts on petroleum products to cushion the blow. 'This is not a hypothetical scenario anymore — this is happening,' the Albay congressman stressed, warning that prolonged hostilities could push oil prices past $100 per barrel.

The congressman also called on the Department of Migrant Workers and the Overseas Workers Welfare Administration to immediately activate crisis protocols. 'We need real-time headcounts of Filipino workers in the region, pre-positioned evacuation plans, and an emergency repatriation fund that can be deployed at a moment\'s notice,' he said.

Global analysts from CNBC to Reuters are warning that the strikes pose 'bigger ramifications than Venezuela' for energy markets. Asian markets, which depend heavily on stable energy supplies and Middle East trade routes, are expected to open lower with heightened volatility when trading resumes Monday.

For ordinary Filipinos, the Iran crisis could mean higher prices for everything — not just gasoline and diesel, but also food, transportation, and consumer goods. Salceda's warning comes as the Philippines is already dealing with inflation pressures and a widening trade deficit that hit $4 billion in January alone.

Source: Politiko / Reuters / CNBC