General Alliance of Workers Association (GAWA) secretary general Wennie Sancho projects that the Philippines will be facing challenging times ahead, which conveys the gravity of the situation as a result of the Iran-U.S.-Israel war in the Middle East, which he described as a turbulent situation.
The Philippines, a net oil importer, is bracing for potential economic impact which include higher inflation and a weaker peso. If the war were prolonged, the global economy could face catastrophe consequences and devastating impact potentially leading to widespread economic collapse, Sancho said in a statement.
The government should consider measures to protect vulnerable groups. Job retention programs should be strengthened by providing subsidies or training to help workers in affected industries. Unemployment should support workers who lose their jobs due to economic impact, and cash assistance whether one-time or periodic cash aid to vulnerable households, he said.
Sancho said government should strengthen price control, regulate prices of essential goods to prevent hoarding and profiteering. Food security programs should be expanded to ensure access to affordable foods and essential supplies. Social safety nets should be strengthened to promote economic stabilization.
Workers and consumers are bracing themselves for a potential economic shock as oil price surge due to escalating tensions. Fuel prices are expected to rise significantly with estimates suggesting increases of P 1.40 to P1.60 per liter for gasoline and P0.80 for diesel and P0.90 for gasoline, he said. The U.S. Israel strikes against Iran and reprisal by Tehran would severely disrupt the global supply of crude oil and send prices soaring to levels not seen in years.
The impact of oil prices will remain unknown until the Brent future markets reopen for the coming week, but analysts have sounded warnings about such a scenario. While hoping for the best, let us prepare for the worst, Sancho added.*
