Sen. Sherwin Gatchalian warned that the Philippines may struggle to reach its revised economic growth target of 5 to 6 percent this year as rising oil prices and inflation place additional pressure on the economy.
The senator said the sudden surge in global oil prices could have widespread effects on transportation costs, food prices, and other essential goods.
“Higher oil prices can trigger inflation and slow economic growth if not properly managed,” Gatchalian said in remarks cited in earlier reports discussing the impact of global oil market volatility.
The warning comes as global oil markets continue to react to geopolitical tensions that have pushed crude prices higher.
Because the Philippines imports most of its fuel supply, domestic pump prices are highly sensitive to international price movements.
Rising fuel costs can affect several sectors, particularly transportation and agriculture, where diesel is widely used.
Gatchalian urged policymakers to closely monitor developments and act quickly if the situation worsens.
He also emphasized the importance of providing assistance to sectors most vulnerable to rising fuel costs.
Economic managers have said they are carefully monitoring the potential impact of global oil price movements on inflation and economic growth.
Despite these concerns, officials remain hopeful that domestic demand and government programs could help cushion the economy.