The Philippine Chamber of Commerce and Industry (PCCI) expressed fear that the Middle East situation could reignite inflation in the country as prices of oil is expected to rise amid disruption in supply.
“The compounding effect of higher fuel prices, disrupted supply chains, and reduced remittance inflows threatens to reignite inflation and erode the purchasing power of ordinary Filipinos,” said PCCI in a statement.
The Philippines sources 100 percent of its crude oil imports from the Middle East. With oil prices surging amid fears of disruption in the Strait of Hormuz, PCCI would like the government urgently explore and secure alternative sources of fuel supply to reduce dependence on a single region.
It warned that higher inflation will impact adversely the most on the micro, small and medium enterprises (MSMEs), with their limited financial buffers. The Philippines targets inflation level this year within the 2-4 percent band. In January this year, annual inflation rate rose to 2.0 percent, marking an 11-month high and accelerating from 1.8 percent in December 2025.
With this situation, the PCCI has called on government to stabilize fuel prices and guard firmly against speculative practices that exploit the crisis.
PCCI, known as the voice of Philippine business, would like the government to ensure the adequate supply of basic goods and commodities through strategic buffer stocking and price monitoring.
The country’s largest business organization also asked the government to deploy monetary tools to protect the peso, maintain financial stability, and preserve investor confidence.
“While we join the international community in calling for an immediate ceasefire and a return to diplomatic dialogue, we wish to sound the alarm on the serious economic consequences this crisis poses on our economy, and the Filipino people,” the PCCI said in a statement.
