The Senate is set to review the country’s economic outlook and policy readiness amid rising risks from the escalating Middle East conflict, Senator Sherwin Gatchalian said Tuesday.
Gatchalian, chair of the Senate Committee on Finance, is pushing for an inquiry to assess whether the Philippines’ budget framework remains realistic under volatile global conditions.
“It is important to determine whether current market conditions remain aligned with the national budget and to identify whether adjustments to fiscal policy are needed to ensure it continues to respond to the needs of our people,” he said.
In a separate statement, Senator Francis Pangilinan warned that rising fuel costs threaten food security and the livelihoods of farmers and fisherfolk, who rely heavily on fuel for production and transport.
“We support the suspension of the fuel excise tax because our small farmers and fisherfolk are being hit… farmers and fisherfolk are the reason why we have food to share at the table,” Pangilinan said, referring to Senate Bill No. 1982 authored by Senator JV Ejercito.
The proposed tax suspension could cut pump prices by about P6 per liter for diesel, P10 for gasoline, and P5 for kerosene.
Projections from the Department of Economy, Planning, and Development show inflation could rise to 4 to 4.2 percent this year if oil prices hit $100 per barrel and stay above $80 until May.
Inflation could further accelerate to 4.5 to 4.8 percent if prices surge to $140 per barrel and remain elevated through September.
The agency also warned that remittances from overseas Filipino workers could drop by as much as 65.3 percent from 2025 levels, or about P226.58 billion, if a deployment ban is imposed and 10 percent of affected workers are repatriated.
Economic growth may also slow, with gross domestic product projected to contract by 0.20 to 0.30 percent if high oil prices persist.
Fuel accounts for roughly 80 percent of food production costs, with some fishing groups already scaling back or halting operations due to rising expenses.
Pangilinan warned that without immediate intervention, higher fuel costs could worsen poverty among food producers and deepen food insecurity.
