Business leaders here remain optimistic that the Philippines can weather the potential fuel shock, even as concerns grow that higher energy costs could push up commodity prices and slow economic growth.
They say the country’s resilience in past crises—from the Asian financial meltdown to the COVID-19 pandemic—gives them confidence the economy can withstand the latest challenge.
Regan Rex King, president of the Cebu Chamber of Commerce and Industry (CCCI), said the Philippines has repeatedly demonstrated resilience in the face of major economic shocks.
King noted that the country had endured these crises before and managed to recover each time.
He recalled that many believed the Philippines was “finished” when the 1997 Asian financial crisis triggered a sharp depreciation of the peso—from P26 per US dollar in June 1997 to P42 by January 1998—fueling high inflation, a steep economic slowdown, instability in the banking sector, and a surge in the country’s foreign debt.
“And yet are we gone? The Philippines is still standing. Even if fuel prices reach P100 per liter, life will go on,” he added.
Contingency plans
King said the most important thing was not to panic but to work together to find solutions and keep the economy moving.
He said the business sector in Cebu has been holding regular coordination meetings with government agencies to monitor fuel prices, basic commodities, and freight costs.
He added that businesses are considering the deployment of rolling stores—similar to those used during the COVID-19 pandemic—to sell food, medicines, and other essential goods directly to communities to ensure access to basic necessities.
King said the crisis could also push businesses to innovate and adapt, much like what happened during the pandemic.
Acceleration of digitalization
Bryan Yap, chair of Cebu Business Month 2026, noted that the two-year pandemic, which restricted people’s movement due to health protocols, accelerated digitalization as companies shifted to e-commerce and adopted hybrid work arrangements to survive.
With the current crisis, he said businesses will find ways to innovate and become more efficient.
The fuel crisis, he added, might just accelerate the shift toward the use of electric vehicles and other alternative energy sources.
The information technology and business process management (IT-BPM) sector appears relatively resilient to the fuel crisis, having already adopted hybrid work arrangements during the pandemic.
“We were essentially trained during the pandemic,” said Darwin John Moises, the chamber’s vice president for partnerships, engagement and governance.
Moises said the industry is already used to flexible work arrangements, which do not only refer to the time people work but also where they work. Many in the workforce are already on hybrid setups.
Steady supply at higher prices
Meanwhile, the trading sector is focusing on maintaining inventories and monitoring supply chains despite rising costs.
Bernard Vonn Sia, CCCI vice president for Cebu business mobilization and a member of the Cebu Contractors Association, said the sector must ensure that goods remain available even if prices rise.
He said that having no products to sell would be far worse for the economy than having high prices.
On the construction side, Sia said companies are now in belt-tightening mode, ensuring that logistics are well managed and operations remain lean.
“As far as contractors are concerned, we are making sure we maintain a lean operating system so that operating expenses stay low,” he added.
Be proactive
Anton Perdices, CCCI vice president for business development, urged companies to avoid any knee-jerk reaction and just proceed with caution and be proactive.
He advised them to find ways to save on power and transportation and just bring down the operations to the necessary essentials.
The last thing businesses want is for the economy to shut down, said Shannen Keisha Tan, board secretary of the Cebu Chamber of Commerce and Industry (CCCI).
“Whatever happens, even despite all the increases, all the spikes, all the unexpected curves, all we want to do is to keep the economy running because once it stops running all of us will be in trouble. That's why some businesses are choosing to subsidize certain costs,” she said. —Ed: Corrie S. Narisma
Contributor
