President Ferdinand R. Marcos Jr. on Wednesday said the government stands ready to extend fuel subsidies to sectors severely affected by potential oil supply disruptions in the Middle East due to escalating tensions between Israel and Iran.

“We are starting already with the assumption that oil prices will in fact go up, and I cannot see how it will not because the Strait of Hormuz will then be blocked if it escalates,” President Marcos said when interviewed by reporters following a school inspection in Quezon City.

The President recalled that the government provided fuel subsidies to the public transport sector during the pandemic.

“Now we will have to do the same for those who are severely affected by any instability in the price of oil,” President Marcos said.

In 2023, the government provided fuel subsidies to public utility vehicle (PUV) drivers to help them cope with rising fuel prices.

Due to the ongoing conflict between Iran and Israel, concerns have emerged over a potential slowdown in the flow of shipping and crude oil through the Strait of Hormuz, which could drive oil prices upward and impact the global economy.

The Strait of Hormuz is a critical passageway for the global energy market, serving as a conduit for nearly one-third of the world’s seaborne oil and about one-fifth of global liquefied natural gas (LNG) shipments. | PND