The Philippines could face a sharp rise in fuel prices as fighting in the Middle East threatens global oil supply. With tensions escalating around the Strait of Hormuz, one of the world’s most critical energy shipping routes, analysts warn that pump prices may increase quickly.
According to the Philippine Department of Energy, about 98% of the country’s crude oil supply comes from the Middle East. That dependence makes the Philippines one of the most exposed economies in Asia when global oil prices surge.
Economists at ING Group say the Philippines ranks among the “worst impacted” economies during oil price spikes. Unlike neighbors such as Indonesia and Thailand, the Philippines has limited fuel subsidies, meaning local pump prices closely track international markets.
Oil recently hovered near $80 per barrel. Analysts warn that even a 10% increase could widen the country’s trade deficit and drive inflation higher. ING
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