Article by:
Joann Villanueva
MANILA – A manufacturing group on Monday welcomed this week’s fuel price rollback but urged structural reforms to address ongoing competitiveness challenges linked to the Middle East conflict.
In a statement, Federation of Philippine Industries (FPI) Chairperson Elizabeth Lee said the oil price cut “is good news for Philippine industry, and we commend the government for its swift action and implementation.”
"This rollback, particularly the diesel correction, will provide immediate operational relief for purchases made under rollback prices," she said.
However, Lee said firms cannot rely on temporary price movements and need stable energy policies.
She noted that industry participants cannot plan around geopolitical windfalls, stressing the need for "durable energy policy."
"For the Philippine manufacturing sector, fuel costs are not a peripheral expense — they are deeply embedded in every stage of the value chain: raw material procurement, factory operations, logistics, and last-mile distribution," Lee said.
She added that rising oil prices due to the Middle East conflict have significantly increased costs across industries.
Iran and the U.S. formally agreed to a two-week ceasefire, but Lee said uncertainty still lingers.
"The ceasefire is time-bound and we don't even know if it will hold," she said. "Volatility remains."
Lee proposed measures such as strengthening "buy local”" policies, providing targeted and time-bound support for micro, small and medium enterprises and energy-intensive sectors, and accelerating the shift to electric vehicles.
She also added that a sustained drop in fuel prices could ease costs over time. (PNA)
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