The perfect storm

Reflecting on the situation of our economy today, an idiom comes to mind: “the perfect storm.”

I do not wish to be an alarmist, but fuel prices have increased by almost P30 in the past two weeks alone. Grocery and other household essentials, which is the largest expense of most families, have become more expensive. Our employment rate is at 4.4 percent, with 2.2 million Filipinos jobless. Transport groups are suffering because with the increase in gas prices, their take home has been significantly decreased to the point where some are earning below minimum wage for a full day’s labor. Even our overseas Filipino workers are affected by the crises, as over a thousand OFWs are repatriated through the collective efforts of the Department of Foreign Affairs, Department of Migrant Workers and the Overseas Workers Welfare Administration. Many more are losing their jobs or are faced with job uncertainty.

In light of ongoing tensions in the Middle East, oil prices have surged globally. This sets off a series of events that affects our economy. As fuel prices rise, transport and production costs also increase – this would then drive up food prices and overall inflation. Note that our inflation rate is currently at a 13-month high – it rose to 2.4 percent in February.

Fuel price spikes affect multiple sectors, particularly those who are economically vulnerable and marginalized. Public transport drivers, farmers and fisherfolk are directly hit. Sudden and uncontrollable price increases affect the daily lives of our countrymen and women.

We are fortunate to be safe and far from the areas where the conflict is unfolding, but we are not beyond the reach of its consequences. The Philippines imports 90 percent of its oil, and this makes our country highly exposed to global economic disruptions. Our country is currently facing multiple economic crises – oil, food and job crises.

Recognizing the urgency of the situation, President Marcos declared a State of National Energy Emergency. We were the first country in the world to declare a state of emergency.

Executive Order (EO) 110 was signed March 24, 2026. EO 110 states that there is an imminent danger of a critically low energy supply and that urgent measures are necessary to ensure the stability and adequacy of the country’s energy supply. It authorized the government to implement urgent measures to ensure the stability and adequacy of the country’s energy supply. This includes the implementation of the Unified Package for Livelihoods, Industry, Food and Transport (UPLIFT) program and the creation of the UPLIFT committee. The committee will monitor and ensure that there will be continued and orderly movement of fuel, food, medicine, agricultural products and other essential goods.

Under the UPLIFT program, we can expect further interventions from various departments:

The Department of Transportation will provide fuel subsidy allocations and commuter fare subsidies for the transport section, including the expansion of the Libreng Sakay Program.

The Department of Energy will guarantee consumer protection by taking action against hoarding, profiteering and supply manipulation. It will also implement the Government Energy Management Program to save electricity in government offices.

The Department of Social Welfare and Development will expedite that release of assistance and provide appropriate social welfare and livelihood support to affected sectors.

The Department of Migrant Workers will continue to monitor, rescue, evacuate and repatriate distressed OFWs. It will also expedite the release of Agarang Kalinga at Saklolo para sa OFW na Nangangailangan (AKSYON) Fund.

Prior to the declaration of the state of emergency, the government has begun to provide social aid to ease the burden. The Department of Social Welfare and Development, under Sec. Rex Gatchalian, has long been ready to support OFWs affected by the conflict in the Middle East. Through its Assistance to Individuals in Crisis Situations (AICS) program, it will ensure that returning OFWs will have access to essential needs and other urgent concerns. This is important to OFWs who have returned home with limited savings. Meanwhile, TESDA and DOLE are both working together to give repatriated OFWs a chance at finding work back home.

Moreover, the DSWD, DOTr and DA are releasing fuel subsidies for transport groups, farmers and fisherfolk across the country. In fact, the House of Representatives’ agriculture and food committee chairman Rep. Mark Enverga and I, as vice chairman, also launched an investigation into the current food crisis. We are working on measures that would strengthen and broaden subsidy programs for Filipino farmers and fisherfolk as I don’t think that the current subsidies are sufficient, given the current crisis. We are working on exploring other sources of funding.

Another very important development is that President Ferdinand Marcos Jr. signed into law a measure allowing the suspension or reduction of excise taxes on petroleum products. I was a proud co-author of this bill.

Through Republic Act 12316, the Development Budget Coordination Committee (DBCC) and in coordination with the secretary of energy is now authorized to suspend or reduce excise taxes on fuel if the average Dubai crude oil price reaches or exceeds $80 per barrel for one month. RA 12316 is a practical solution to provide immediate relief at a time when global fuel price spikes are no longer bearable to ordinary Filipinos. Thanks to the decisive leadership of House Speaker Bojie Dy, this measure passed quickly, allowing much-needed relief to Filipinos affected by rising fuel costs.

Are we now in the midst of a perfect storm? Yes. But is there hope? Yes, there’s always hope. This is where true leadership and bayanihan shines. We must have faith that our leaders will step up. We must all do our part for our country during these trying times. Together, we will make it through the storm.