Rising oil prices force Philippines to cut energy use, eye four-day work week

The Philippine government is considering a range of energy-saving measures as escalating tensions in the Middle East drive global fuel prices higher and threaten to increase domestic inflation.

The Southeast Asian nation imports almost all of its oil needs, making it particularly vulnerable to rising energy costs linked to the war involving Iran. Economists warn the situation could intensify inflation, which already reached a 13-month high in February.

In response, the administration of Ferdinand Marcos Jr. has introduced several steps aimed at reducing fuel and electricity consumption, as per Bloomberg. Government offices have been ordered to set air-conditioning temperatures no lower than 24°C (75°F). Agencies are also being encouraged to adopt flexible working arrangements to cut commuting and energy use.

The government is also considering a four-day work week as another way to conserve fuel. At the same time, Marcos plans to seek emergency powers from Congress that would allow authorities to temporarily reduce taxes on petroleum products if prices continue to climb.

Other officials are also promoting conservation measures. Sara Duterte has called on her supporters to avoid organising motorcades or vehicle caravans during protests against the president, noting that such events consume large amounts of fuel.

At the local level, the mayor of Manila has directed city government departments to reduce fuel and electricity consumption. Measures include shifting meetings online, turning off power in offices by 5:00 p.m., and banning non-essential travel.

Economists say the Philippines is among the Asia-Pacific economies most exposed to inflation risks from the Middle East conflict. According to Deepali Bhargava, regional head of research at ING Bank NV, the country often experiences stronger inflation shocks because retail fuel prices are largely market-driven and government subsidies are limited.

Some government agencies are preparing targeted support measures to soften the impact of rising fuel costs. These include potential fuel subsidies for fishermen, farmers, and public transportation drivers.

A mobile app is also helping some citizens cope with price volatility by allowing them to purchase “virtual fuel” in advance and lock in current prices.

However, not all sectors support the proposed four-day work week. The Philippine Chamber of Commerce and Industry warned the plan could hurt manufacturing, a major pillar of the country’s economy.

Perry Ferrer, the chamber’s president, said manufacturers are already operating with limited resources and reducing the number of workdays could disrupt production commitments.

By Tamilla Hasanova