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A broader look at today’s business Saturday, March 7, 2026 Vol. 21 No. 146
BSP TRACKS OIL, DOLLAR AS PESO BREACHES ₧59:$1 I
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Amid Mideast conflict, BOC forms unit to track oil import shipments
By Andrea E. San Juan
F the price of oil shoots up to $100 per barrel and the dollar continues to strengthen, the Bangko Sentral ng Pilipinas (BSP) said it may consider a hike in interest rates. BSP Governor Eli M. Remolona Jr. said this in a televised interview on Friday after he underscored that the dollar strength combined with a persistent rise in the price of oil could cause concern about inflation. While the Central Bank is closely monitoring the recent developments due to the conflict in the Middle East, Remolona said the BSP still does not see the need to raise interest rates. “At some point, if the price of oil goes to, say $100 a barrel ,and
the dollar continues to strengthen, then we’ll have to consider a rate hike,” said Remolona. “But for now, where the price of oil is and where the dollar is, we don’t see the need for a rate hike. So for now, we’re where we want to be in terms of monetary policy,” the BSP governor underscored. In peso terms, he explained that the price of oil is 10 percent higher than before. Remolona said 10 percent is still “very manageable.” However, he said: “If it goes up 50
AN oil depot and fuel storage facility stands in Cebu City. The Bureau of Customs is forming a task force to track oil import shipments and inspect storage facilities nationwide, amid global supply concerns triggered by geopolitical tensions in the Middle East. MICHAEL O. LIGALIG | DREAMSTIME.COM
On possible rate hikes: “At some point, if the price of oil goes to $100 a barrel and the dollar continues to strengthen, then we’ll have to consider a rate hike.”— Eli M. Remolona Jr., governor, BSP
On conflict impact: “Circumstances point to a somewhat protracted conflict, which could mean we may see oil prices rising further.”— Emilio S. Neri Jr., lead economist, BPI
percent, then that’s going to be something we have to deal with more strongly.” Remolona called the $100 per barrel “the threshold,” saying that at this mark, the price of oil begins to have effects on the prices of many commodities.
“And that tends to be something we have to worry about when it comes to inflation,” the BSP governor said. The Central Bank’s chief said the main effect of this $100 per barrel price would be on inflation. See “BSP...,” A2
By Reine Juvierre S. Alberto
T
HE Bureau of Customs (BOC) is forming a task force to track oil import shipments and inspect storage facilities nationwide as geopolitical tensions in the Middle East threaten global fuel supply. A statement issued by the BOC on Friday read that Customs Commissioner Ariel F. Nepomuceno is creating the Bureau of Customs Oil Inventory Level (BOC-OIL) Task Force to conduct joint inspections and supervise the monitoring of oil depots, bulk storage terminals and other petroleum storage facilities across the country. The task force will be led by lawyer Allen Dela Cruz of the BOC, with lawyer Victor Pablo C. Trinidad of the BOC Legal Service as a member, in collaboration with the Department of Energy and the Bureau of Internal Revenue. Nepomuceno has also instructed all ports to closely monitor the volume of oil importations and evaluate the sufficiency of the existing fuel supply entering the country.
“On average, 45 days. Some even have up to 60 days of supply. This means we are way beyond what is required for businesses.”— Energy Secretary Sharon S. Garin, saying the Philippines has more than enough oil inventory despite global supply concerns
“Given the current geopolitical developments, it is important for the Bureau to closely track the movement of oil importations and monitor available inventory levels,” Nepomuceno said. “This will allow us to provide relevant updates to the administration and help ensure that the country remains prepared for any potential supply disruptions.” As such, regular reports on oil imports within their respective jurisdictions must be submitted by all district ports. See “BOC...,” A2
PBBM to use UN appearance to call for peace in Middle East By Samuel P. Medenilla
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Continued on A2
SHELLING OUT: SEA URCHINS AND RISING FUEL PRICES
A fisherman displays cultured sea urchins from Santiago Bay, Ilocos Sur, a vital source of livelihood for coastal families. As the government debates fuel excise tax cuts—potentially costing P32 billion per month if fully suspended—experts warn that benefits largely favor wealthier households, while targeted support is needed for those most vulnerable to rising oil prices, including daily wage earners and agricultural families. MAU VICTA
Cutting excise tax on petroleum to benefit only car owners–bank By Andrea E. San Juan
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HE proposal to cut excise taxes on petroleum products is a “populist measure” which will benefit only the carowning middle- and upper-income households rather than the poor, according to Union Bank of the Philippines. “We remain concerned that populist measures may find their way into the policy mix—most notably proposals to cut excise taxes on petroleum products,” UBP said
in its latest commentary. The bank explained that while such cuts can temporarily soften headline inflation, the benefits “accrue largely to car-owning middle- and upper-income households rather than to the poor.” UBP asserted that the policy deprives government of critical revenues needed to fund “targeted and far more efficient support mechanisms” for those “genuinely vulnerable” to oil price shocks: daily wage earners, transport workers, students, and agricultural households.
An excise-tax cut therefore weakens both the welfare impact and the fiscal anchor, the bank’s commentary underscored. “Reduced revenues amid sustained spending pressures widens the budget deficit and inflates the government’s debt stock,” UBP added. From a strategy standpoint, it noted that any movement in this direction is a “clear signal to cut duration, as the fiscal deterioration increases term-premium risk and See “Cutting...,” A2
₧32B PER MONTH
Economist Joey S. Salceda warned that a full suspension of excise taxes on gasoline and diesel could cost the government P32 billion per month.
RESIDENT Ferdinand Marcos Jr. will call for peace in the Middle East when he flies to the United States to participate in the United Nations General Assembly (UNGA) Special Session next week, according to the Department of Foreign Affairs (DFA). The chief executive, however, is not expected to have separate meetings with US President Donald Trump and other world leaders as well as with the Filipino community during his working visit in New York on March 9 and 10. Marcos is scheduled to attend the 70th session of the Commission on the Status of Women and the UNGA special session. He will also be meeting with UN Secretary General António Guterres to discuss the ongoing armed conflict in the Middle East after the US and Israel launched air strikes against Iran. Iran retaliated by attacking its neighboring countries with US military bases. “This trip is very important, this is the right opportunity given what is happening in the Middle East. The UN is the most appropriate place for our President
to call for peace in the Middle East and the safety of all civilians, especially our countrymen,” DFA spokesperson Angelica Escalon said in Filipino in a press briefing in Malacañang. Marcos earlier called for the immediate end to the armed conflict, which is now affecting the over 2 million Filipinos in the region. He will also reiterate the Philippines’ bid to become a non-permanent member of the UN Security Council in 2027 and 2028, since it is expected to give the country greater voice in global safety and security issues. “These issues are important for Filipinos and citizens from developing countries. It has an impact on our sovereignty, maritime security, the global economy and the safety of our overseas Filipino workers,” Escalona said. “By joining the UN Security Council, we will be part of the solution now so that we are prepared for any challenges we face in the future,” he added. In his address at the General Assembly, the President will also push for the rule of law, multilateralism, sustainable See “PBBM...,” A2
PESO EXCHANGE RATES n US 58.4690 n JAPAN 0.3710 n UK 78.1204 n HK 7.4780 n CHINA 8.4584 n SINGAPORE 45.6539 n AUSTRALIA 40.9634 n EU 67.8825 n KOREA 0.0395 n SAUDI ARABIA 15.5784 Source: BSP (March 6, 2026)