Philippine Firms Brace for Rising Costs as Oil Surge Drags Peso

Article content(Bloomberg) — Philippine companies are bracing for higher costs as oil’s spike above $100 a barrel drags the peso to a record low, heightening the risks for an economy heavily reliant on fuel imports from the Middle East.Sign In or Create an AccountEmail AddressContinueor View more offersArticle content“I can’t imagine anyone not being afraid of what we’ve been reading,” Sergio Ortiz-Luis Jr., head of the Philippine Exporters Confederation Inc., said on Monday. The group, comprised of about 4,000 exporters and service providers, was already dealing with the uncertainty on US tariffs before fuel costs climbed, though members have not indicated plans to reduce output, he added.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentWhile a weaker currency bodes well for exporters, it inflates the import cost of manufacturers in the Southeast Asian nation. Many Philippine producers buy their raw materials and components overseas to ship out finished goods such as electronic products which comprise about half of the country’s shipments.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe Philippines imports nearly all of its oil needs and the commodity’s surge past $100 a barrel stoked inflation fears in the country and across the region, many of them also net oil importers. Exacerbated by the dollar’s haven appeal, currencies in emerging Asia retreated, with the peso touching a record low.Article contentThe Philippine Chamber of Commerce and Industry warned that a sharp jump in pump prices would be difficult to absorb. A 20-peso (34 US cents) per liter increase, set to take effect this week, would cause fuel, logistics and transport costs to surge, and businesses may have to pass those on to consumers, Ferdinand Ferrer, head of the chamber, told GMA News TV.Article contentOther companies are looking to absorb the extra cost.

Miner Global Ferronickel Holdings Inc. plans to adjust rates for its contractors to cover higher fuel prices, according to Dante Bravo, president of the company. “We are still able to get some fuel supply at the moment,” he said.Article content2GO Group Inc., one of the country’s largest logistics operators controlled by conglomerate SM Investments Corp., said it has measures in place to help manage volatility in fuel prices.Article contentPresident Ferdinand Marcos Jr. is seeking emergency authority from Congress to slash taxes on petroleum products and has enforced a four-day work week from Monday for government offices to save on energy. Article content—With assistance from Tassia Sipahutar.Article contentTrending Yardeni Raises Odds of US Market Meltdown to 35% on Iran War PMN Business Here are 5 things worried investors can do as the Iran war plays out Investor S.

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