MALACAÑANG on Wednesday assured the business sector that the country maintained sufficient fuel supply amid the global oil supply disruption caused by the war in the Middle East.
Executive Secretary Ralph Recto convened the country’s key business groups on Monday to work closely together in swiftly mitigating the impact of global oil price volatility.
Recto and other Palace officials later met with 25 executives from 14 petroleum companies for a “wide-ranging dialogue on supply, inventory and cost issues.”
In a statement, Recto said the meeting was held in line with President Ferdinand Marcos Jr.’s directive to immediately cushion the effects of rising fuel costs on businesses and consumers while safeguarding price stability.
“In the latter, we took a dipstick reading on our country’s fuel tank,” Recto said, which Energy Secretary Sharon Garin announced was good for 50 days.
“And we are hopeful that oil diplomacy should not only keep our stocks replenished, but build them up,” he added.
In both meetings, Recto assured business leaders “of an open line of communication not only with Malacañang but with all government agencies.”
“That is why since Day One of this conflict, the president’s instruction was to reach out to business, civic leaders, local government executives and get their views, and many, in fact, have been inputted in our response,” he said.
As rising fuel costs jack up the prices of goods being transported, business leaders said logistics bottlenecks needed to be cleared and trade facilitation sped up.
On port congestion, Recto referred their proposal to open container yards outside Metro Manila to the Bureau of Customs “for immediate action.” Another proposal, that is “to revisit the duration of the truck ban hours” has been sent to the Metropolitan Manila Development Authority for “urgent review and action,” he said.
It was raised during the meeting that “diesel accounts for about 70 percent of movement costs, and one container van carries the products made by hundreds of workers and needed by thousands of consumers.” Participants also called for more efficient online transactions of documents as an energy saving measure.
Recto said action on their appeal for lower fees charged by local governments “will be fast-tracked.” “With or without this conflict, we should be removing friction costs across the supply chain. This includes unnecessary checkpoints, especially for travelers carrying perishable goods,” he said.
The executive secretary asked for the private sector’s support by practicing energy conservation, implementing flexible work arrangements and preventing unfair pricing practices.
“This is a time for partnership of all, and not profiteering of the few,“ Recto said.
He gave assurances that assistance for the most vulnerable, whether individuals or struggling small companies, would be extended and sustained in a targeted manner.
All their proposals have been referred as “Office of the President directives” to agencies such as the Department of the Interior and Local Government and the Philippine Economic Zone Authority.
Among the business groups present were the Semiconductor and Electronics Industries in the Philippines Foundation Inc., the Philippine Chamber of Commerce and Industry, the Management Association of the Philippines, the Federation of Filipino-Chinese Chambers of Commerce and Industry Inc., the IT and Business Process Association of the Philippines, the Makati Business Club and the Ease of Doing Business Foundation Inc.
Also present were Garin, Economy and Planning Development Secretary Arsenio Balisacan, Presidential Communications Office Secretary Dave Gomez, Senior Deputy Executive Secretary Maria Luwalhati Dorotan Tiuseco, Presidential Communications Undersecretary Claire Castro, Undersecretary Erwin Sta. Ana of the Office of the Executive Secretary.
Despite the assurances from the Palace, senators warned that the country’s limited fuel inventory could trigger a broader economic and supply crisis if left unaddressed.
Precarious
The Senate Committee on Price Stabilization of Basic Commodities, Goods and Services — also known as the Protect Committee — flagged the issue on Wednesday, citing data from the Department of Energy (DOE) showing that the country’s fuel reserves remain critically low.
According to the latest figures, gasoline stocks are projected to last only 57 days, diesel 47 days and liquefied petroleum gas (LPG) just 33 days. On average, the country has roughly 50 days of petroleum supply remaining.
Sen. Sherwin Gatchalian, who chairs the Protect Committee, described the situation as precarious.
“What is happening to us is hand-to-mouth,” Gatchalian said in a statement. “If there is no certainty that the new supply will arrive, we could face a bigger problem after 50 days.”
To mitigate the risk of shortages, the panel is studying possible fuel rationing measures and volume caps on nonessential consumption. These interventions aim to stretch the country’s supply from 50 days to as much as 90 to 120 days.
Priority access to fuel would be granted to local government units (LGUs) responsible for essential services such as health care, public safety and disaster response. The agriculture sector is also expected to receive preferential allocation.
“Farmers and fisherfolk must have access to fuel because our food security depends on them,” Gatchalian said.
The senator also warned of the potential impact of an LPG shortage, noting that it could disrupt daily life for households and businesses nationwide.
“If LPG supply runs out, families and enterprises will struggle to cook and operate. We may be forced to revert to older, less efficient fuel sources,” he added.
Beyond supply concerns, lawmakers raised inflation fears. The latest inflation rate has reached 4.1 percent — above the government’s target range — and is expected to climb further due to fuel price pressures.
Gatchalian, who also heads the Senate Finance Committee, estimated that Filipino households are losing between P1,500 and P2,000 in purchasing power, underscoring the urgency of intervention.
To address this, around P200 billion has been earmarked under the proposed 2026 national budget for direct assistance programs. Congress is also prepared to approve a supplemental budget if necessary.
Lawmakers are also drafting a new relief package, tentatively called “Bayanihan 3,” which will shift focus from pandemic response to energy stability and food security.
The measure is expected to include expanded subsidies for farmers and fishermen, particularly in fuel and production costs. Current agricultural assistance funding of P10 billion may be doubled to P20 billion if fuel prices continue to rise.
