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Saturday, March 28, 2026 Vol. 21 No. 167
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PHL TALKING TO CHINA, JAPAN ON ENERGY DEALS P
Fuel lasts till June, PBBM guarantees; Petron is consignee of Russian crude By Samuel P. Medenilla
PHILIPPINE DFA Undersecretary for Policy Leo Herrera-Lim DANISH EMBASSY IN MANILA
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By Malou Talosig-Bartolome
HE Philippines is working on two key fronts in oil diplomacy, with senior officials in separate talks with China and Japan on possible energy cooperation to ensure stable oil supply amid signs the war in the Middle East might persist longer. Senior Philippine and Chinese diplomats have resumed bilateral dialogue to manage disputes in the South China Sea, with Manila signaling interest in exploratory talks on possible joint oil and gas projects in the contested waters. Meanwhile, Japan and the Philippines are in talks on possible energy cooperation to secure stable oil supplies as tensions in the Middle East threaten global shipping routes. “Oil supply is a shared challenge for both the Philippines and
Japan. Both of us are heavily dependent on Middle East sources,” Japanese Ambassador Endo Kazuya said after signing new official development assistance projects at the Department of Foreign Affairs. On the talks with Beijing, meanwhile, Foreign Affairs Undersecretary for Policy Leo HerreraLim led the Philippine delegation to Fujian, China on Friday for the Philippine-China Bilateral Consultation Mechanism (BCM), the official platform for managing Continued on A2
CHINESE Foreign Vice Minister Sun Weidong CHINA’S MINISTRY OF FOREIGN AFFAIRS
Peso hits new low: 60.55 to USD By Andrea San Juan
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HE Philippine peso plunged to a new record low of P60.55 against the dollar on Friday as markets begin to price in “oil-related” risks, strengthening dollar demand in the near term. Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said: “The peso weakened to 60.55 as markets begin to price in oil‑related risks, reinforcing near‑term dollar demand.” Ravelas said this after data from the Bankers’ Association of the Philippines (BAP) showed the peso closed at P60.55 per $1 on Friday, 32 centavos weaker than its previous finish of P60.23 on Thursday. The analyst explained that trading remains “constraint-driven,” with flows “reflecting caution rather than panic.” Michael L. Ricafort, chief economist at Rizal Commercial Banking Corporation (RCBC), attributed the depreciation of the
RESIDENT Ferdinand Marcos Jr. on Friday gave assurances the country has sufficient crude oil in the next three months even if the conflict in the Middle East will be prolonged. Citing the assurance made by Ramon S. Ang, president and chief executive officer of San Miguel Corp., which owns the oil firm Petron Corp., the chief executive said the country has sufficient fuel supply until June. This after the Palace confirmed a report that 700,000 barrels of Russian crude oil had arrived in the country. A report from the Agence France-Presse said that the consignee of the shipment is Petron Corp. “And the manager of Petron, Mr. Ramon Ang, told me that currently our supply will last until the end of June, June 30. We have supply until June 30,” Marcos said in Filipino at the sidelines of the 47th Commencement Exercise of the Philippine National Police Academy in Cavite last Friday.
PRESIDENT Ferdinand R. Marcos Jr. and Ramon S. Ang lead the inauguration of the westbound off-ramp of the Ninoy Aquino International Airport Expressway to NAIA Terminal 3, March 27, 2026. The opening comes as the administration moves to reassure the public on fuel security amid global uncertainties, with Marcos citing Ang’s assurance that the country has sufficient crude oil supply until end-June. PRESIDENTIAL COMMUNICATIONS OFFICE
Processed crude oil
IN a separate interview at the sidelines of the opening of the westbound off-ramp of the Ninoy Aquino International Airport Expressway (NAIAX) along Andrews Avenue leading to NAIA Terminal See “Fuel,” A2
MIXED VIEWS ON BSP STANCE IN APRIL AFTER OFF-CYCLE MEETING By Andrea Louise E. San Juan
Trading remains “constraint-driven,” with flows “reflecting caution rather than panic.”— Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co.
local currency to “some market doubts on ceasefire on the war on Iran amid diverging/conflicting conditions/demands set by the US and Iran.” On the domestic front, however, Ricafort pointed to the Bangko Sentral ng Pilipinas’ (BSP) higher inflation estimates for 2026 and See “Peso,” A2
DOTr vows relief for Japan-funded rail contractors amid Mideast crisis
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FTER the Bangko Sentral ng Pilipinas (BSP) held an off-cycle policy meeting on Thursday to keep the benchmark rate unchanged, research institutions shared mixed views on the central bank’s potential stance at its upcoming April policy meeting amid the uncertainty over the Middle East conflict. Upon taking into account the BSP’s signals during its unscheduled monetary board meeting, Japan-based think tank Nomura said it sees a “rising probability” that BSP delivers an outright hike in the policy rate in April, with inflation now seen tracking well above its 2 to 4 percent target. New Zealand-based ANZ Research, meanwhile, said it expects the BSP to stay on hold at its next meeting in April as it is expected to keep an eye on second-round price effects.
“We believe there is a rising probability of BSP delivering an outright policy rate hike on 23 April. This is still contingent on the Iran conflict remaining unresolved and oil prices remaining elevated.”—Nomura “We expect the BSP to stay on hold at its next meeting in April and to emphasize continued monitoring of second‑round price effects.”— ANZ Research
Nomura zoomed in on BSP’s signal that price stability is still its main mandate and will focus on second-round effects on inflation from surging energy prices due to the Iran conflict. “BSP’s reiteration that its primary mandate remains price stability suggests to us that the inflation outlook will be BSP’s main policy consideration near-term despite See “BSP,” A2
PHL posts smallest trade gap in 9 months, at $3.68B in Feb By Justine Xyrah Garcia
A SUBWAY construction continues at full pace as the Department of Transportation assures contractors of support amid rising fuel costs, keeping the Metro Manila Subway Project on track despite global pressures. MALOU TALOSIG-BARTOLOME
By Malou TalosigBartolome
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HE Department of Transportation (DOTr) has assured contractors of Japanfunded railway projects that the government will honor contract mechanisms to cushion the impact of rising fuel and material costs brought about by the ongoing crisis in the Middle East. Japanese contractors recently raised concerns over the ripple effects of the Iran crisis, citing surging fuel prices for diesel-powered equipment and possible delays in
the delivery of imported construction materials. Acknowledging these challenges, DOTr Undersecretary for Railways Timothy John Batan said contracts for foreign-assisted projects contain built-in provisions that allow financial relief when prices escalate. “What we expect, the assurance that we give to our contractors, is that we will implement and respect those contracts,” Batan emphasized. He added that the government is coordinating with other agencies to prevent supply shortages and
address logistical hurdles. In earlier interviews, engineers working on the Metro Manila Subway and the North-South Commuter Railway underscored the heavy reliance of tunneling and depot construction on diesel-powered machinery. They noted that excavation and hauling operations consume thousands of liters of fuel daily, making them highly vulnerable to global oil price shocks. Imported materials such as steel and specialized equipment also remain sensitive to supply chain disruptions, reinforcing the need for government support mechanisms.
(See related story:) https://businessmirror.com.ph/2026/03/26/ japan-funded-railway-projects-inncr-hit-by-fuel-price-spikes/ Despite global economic pressures, the Metro Manila Subway Project remains firmly on track. The initiative is financed through a five-tranche loan agreement with Japan, with the Philippine government currently utilizing the fourth tranche. Batan highlighted the project’s rapid progress: “If you heard, 10 tunnel boring machines are running right now on a daily basis.” He See “DOTr,” A2
FTER months of swelling trade gaps, the country finally caught a breather in February, posting its smallest deficit in nine months at $3.68 billion, according to the Philippine Statistics Authority (PSA). This was the lowest deficit recorded since May 2025, when the trade gap stood at $3.64 billion. The narrower deficit came as total external trade reached $18.34 billion, with exports rising to $7.33 billion while imports settled at $11.01 billion during the month. Imports still grew faster than exports, increasing by 12.6 percent year-on-year compared to the latter’s 8 percent expansion. Ateneo de Manila University (ADMU) economist Ser PeñaReyes warned that the narrowing of the trade gap, albeit seen as an improvement, may prove temporary as external risks build up. “It’s likely for the recent narrowing of the Philippine trade deficit to be reversed if the Middle East conflict persists or intensifies. This ongoing conflict introduces strong
“Strengthening appears to be a shortterm correction, with the broader trend still dependent on external factors like oil prices, global dollar strength, and risk sentiment.”—PIDS Senior Research Fellow John Paolo R. Rivera
upward pressure on imports, especially fuel,” Peña-Reyes told the BusinessMirror. “If high oil prices persist, the trade deficit will likely widen again in the coming months.” Philippine Institute for Development Studies (PIDS) Senior Research Fellow John Paolo R. Rivera explained that movements in the peso also reflected shifting demand for dollars, which is closely tied to the country’s trade position. He noted that profit-taking See “Trade,” A2
PESO EXCHANGE RATES n US 60.2150 n JAPAN 0.3771 n UK 80.3027 n HK 7.6967 n CHINA 8.7141 n SINGAPORE 46.8563 n AUSTRALIA 41.4881 n EU 69.4580 n KOREA 0.0399 n SAUDI ARABIA 16.0513 Source: BSP (March 27, 2026)