MANILA, Philippines — Agriculture Secretary Francisco P. Tiu Laurel Jr. dismissed concerns over a possible food price spike, saying extreme projections linked to rising oil prices are unlikely and do not reflect government interventions.
The agriculture chief said the scenarios presented to the Senate, which assumed that crude oil prices would average $200 per barrel for six months, were based on "extreme assumptions" and did not include mitigating measures.
“The prices presented assumed the full impact of soaring crude,” he said. “They did not factor in government action, which we will undertake to protect Filipinos from an oil shock.”
The US-Iran war in the Middle East has heightened concerns about disruptions to fuel and energy supply, especially in the Strait of Hormuz, a critical corridor for global fuel and fertilizer shipments. About 30 percent of global urea trade and 20 percent of ammonia and phosphate flows pass through this waterway.
Despite this, the government said that it is implementing several measures to decouple food costs from volatile energy markets.