PBBM: No major economic disruptions but warns vs. price gouging
Global oil prices softened as the ceasefire deal between Israel and Iran continued to hold Wednesday, resulting in a possible rollback in domestic pump prices by as much as P1.10 per liter next week.
Citing the rapid stabilization of global oil prices following the ceasefire, President Ferdinand Marcos Jr. said he expects no major economic disruptions stemming from the 12-day Israel-Iran conflict, but said the government is on the lookout against price gouging.
“We looked at it and analyzed what could happen. We saw that the effect on the economy should be manageable…The price of oil went up to $79 per barrel, but after the ceasefire was announced, it went back down to $69. So far, there is no significant effect on the economy,” he said.
“What we are watching now is price gouging. I’ve seen a lot of sellers raising prices even though oil prices haven’t gone up,” he said.
Most equities extended a global rally Wednesday after the ceasefire ended more than a week of hostilities. However, wariness over the agreement involving the Middle East foes helped oil prices climb, though they are still well down from their highs on Monday.
According to Jetti Petroleum president Leo Bellas, this week’s first two days MOPS (Mean of Platts Singapore) average was lower versus last week’s average.
He said using the average two-day MOPS, price movement indication for next week is a rollback of P0.80 to P1.10 per liter for diesel and P0.10 to P0.20 per liter for gasoline.
“The decline in prices started with the easing of war risk premium on crude oil following the de-escalation of the conflict. World oil prices further went down after the ceasefire agreement between Israel and Iran, reducing the risk of supply disruption in the Middle East,” Bellas added.
Department of Energy (DOE) officer-in-charge Sharon Garin, together with officials from the Oil Industry Management Bureau (OIMB), led an onsite monitoring at fuel retail outlets in Taguig City on Wednesday.
This was in line with President Marcos’ directive to ensure that price increases implemented by fuel retailers comply with the agreed staggered pricing mechanism.
Should violations be found, such as inaccurately calibrated dispensers, expired permits, or other forms of non-compliance, the DOE may recommend administrative sanctions or refer the case to the appropriate local government unit for the suspension or revocation of business permits.
For his part, Albay Rep. Joey Salceda echoed the President’s pronouncement that the Israel-Iran conflict will have no “no significant impact” on the Philippine economy.
However, Salceda warned the Philippines should be prepared for the worst.
“There will be some who will fall through the cracks, mainly OFWs (overseas Filipino workers) from the region. The speculative spikes in oil prices could also affect some sensitive sectors like fisheries, transport, and power. So, we should remain watchful and prepared,” he said.
