The government said the ongoing conflict between Israel and Palestine may lead to higher fuel prices although this impact is not expected to be long-term.
The Department of Energy (DOE) said the Philippines does not source fuel directly from Israel but traders fear the possible involvement of Iran could affect global supply. Iran is a member of the Organization of Petroleum Exporting Countries.
“We do not expect the effects of the attacks on Israel to oil and gas pricing to be long term, unless the conflict escalates. We do not directly source supply from Israel but (from) its neighbors in the Middle East, almost all of them are our sources of crude oil,” said Rodela Romero, DOE assistant director of the Oil Industry Management Bureau, in a televised interview yesterday.
Romero said the price of crude has increased by $3 to $4 per barrel on Monday and might not immediately result to higher prices locally.
She said next week’s local prices would trail movements in global crude cost in the remainder of the trading days this week.
Romero said experts project a crude supply deficit globally until the end of the year but its impact on prices could be tempered by higher central bank interest rates, a stronger US dollar and weaker economic activities of the world’s top economies.
Meanwhile, the Department of Agriculture (DA) assured the tensions will not greatly affect local agriculture production.
Israel has been a long-time partner of the DA in various initiatives particularly in water management and fertilization but Philippine agriculture exports to that country is only 6 percent of total shipments.
The Philippines imported $3.28 million worth of fertilizer from Israel in 2022.
Israel has been buying desiccated coconut, pineapple juice and concentrates and other mixtures from Filipino producers.