Relief and resilience

Even if the conflict in the Middle East shifts from physical war to a war of words and wounded pride among its main protagonists, including U.S. President Donald Trump’s apparent desire not to appear weak before Iran, its harmful effects will continue to reverberate around the world and could hurt us even more.

There is some comfort in seeing that the government and other stakeholders are adopting and proposing measures to address the crisis. I say only some comfort because uncertainty still prevails, and in a crisis of this magnitude, no one, not even the experts, can predict the endgame.

President Ferdinand Marcos Jr. recently signed Republic Act No. 12316, which creates a limited statutory authority for the president to temporarily suspend or reduce excise taxes on fuel products during periods of extraordinary volatility in global markets. The suspension or reduction may be applied only to specific petroleum products and may take the form of either a full suspension or a partial reduction of the applicable excise tax rates, depending on prevailing conditions.

The law seeks to address two seemingly competing concerns. On one hand, suspending or reducing excise taxes will ease the burden on consumers and lower prices at the pump. On the other hand, those excise taxes are also an important source of government revenue, now badly needed for targeted subsidies or “ayuda” for vulnerable sectors.

In Region 7, the Philippine Information Agency reported that the Regional Development Council met yesterday in Mandaue City for its 1st Quarter Full Council Meeting, where members discussed the impact of the U.S.-Iran conflict on the local economy, including its effects on inflation, fuel prices, and the cost of basic goods, as well as mitigation efforts across sectors in response to the Middle East crisis.

Yet this crisis also reminds us that short-term relief is not enough. I received yesterday a press release from House Minority Leader Marcelino “Nonoy” Libanan about his call for the Philippine National Oil Company to develop strategic coastal fuel storage facilities, especially in the Visayas and Mindanao, to create government-managed emergency fuel reserves amid global supply disruptions.

A recent Rappler online discussion on solar power underscored how more Filipino households are now turning to solar not only to reduce electricity bills, but also to protect themselves from supply shocks, high energy costs, and power interruptions. The upfront cost remains a serious barrier. But this crisis gives us a chance to see solar not as a niche environmental choice for the few, but as a practical necessity for stronger households and greater energy security in the years ahead.

With the expected steep price increases in basic commodities, many are once again calling for belt tightening and conservation. But not all belt tightening is wise. When ordinary households are forced to spend less, the result can be weaker demand and economic contraction. I support instead targeted subsidies, redistribution, and strategic investment in sustainable productivity, so that the burden does not fall hardest on those already struggling.

Belt tightening for its own sake is pointless. In times of crisis, the task is not merely to keep money moving, but to direct it where it does the most good: transport, food, energy, and essential services. Help preserve the spending power of those whose budgets were already strained even before the crisis. The middle class growing poorer and the poor sinking deeper into poverty will only worsen stagnation. Wealth that is hoarded, rather than circulated or invested for the common good, is wasted economic potential.