MANILA — The government is prepared to roll out targeted measures to keep inflation in check, including the possible suspension of fuel excise taxes, as global oil prices rise amid tensions in the Middle East, the Department of Economy, Planning, and Development (DEPDev) said.
Latest data from the Philippine Statistics Authority (PSA) showed headline inflation edged up to 2.4 percent in February from 2.0 percent in January, bringing the year-to-date average to 2.2 percent. The figure remains within the government’s two- to four-percent target band for 2026 and 2027.
Price pressures were driven largely by faster increases in food and utility costs. Food inflation accelerated to 1.6 percent from 0.7 percent in January, with fish prices climbing 7.7 percent amid red tide alerts that prompted bans on shellfish and crustaceans in some areas.
Non-food inflation also rose to 2.8 percent from 2.5 percent, fueled by higher housing rentals and electricity rates, which increased 3.0 percent and 6.6 percent, respectively.
Despite the uptick, DEPDev Secretary Arsenio Balisacan said overall price conditions remain “stable,” although authorities are closely monitoring geopolitical developments and domestic supply conditions of key commodities.
“We are mindful of recent geopolitical developments, which we are closely monitoring, along with domestic supply conditions,” Balisacan said.
With oil prices vulnerable to further spikes, the government is weighing the temporary lifting of excise taxes on petroleum products should global crude prices breach US$80 per barrel. The move is aimed at cushioning consumers and transport operators from sudden fuel cost increases.
In addition, the government plans to implement fuel-saving measures across public offices and is urging the private sector to adopt similar practices. These include the use of shuttle services, carpooling, and flexible work arrangements such as work-from-home setups and compressed workweeks to reduce fuel consumption.
Beyond immediate relief, the administration is pursuing longer-term strategies to curb dependence on imported oil. These include incentives for renewable energy and alternative fuels, promotion of active transport such as cycling and walking, and strengthened energy conservation programs.
Balisacan said the government stands ready to deploy timely and targeted interventions if external shocks intensify.
“Our priority is to protect vulnerable households, support affected industries, and sustain the country’s growth momentum amid global uncertainties,” Balisacan pointed out.