MANILA — Manufacturing firms in the Philippines are not showing signs of laying off workers despite the recent surge in fuel prices, a top official of the Federation of Philippine Industries, Inc. (FPI) said.

“Just generally, we are not getting information that the manufacturers are actually, you know, letting go of people at this point in time,” FPI chairperson Elizabeth Lee said on the sidelines of the FPI Summit 2.0 in Bonifacio Global City.

Lee credited government measures for helping cushion the impact of rising oil prices on citizens. The national government has been distributing fuel subsidies to public utility vehicle drivers and is considering procuring up to 2 million barrels of oil to increase the country’s buffer stock.

Domestic fuel prices surged by over PHP20 per liter this week amid escalating global oil costs linked to the Middle East conflict. Gasoline rose by PHP12.90 to PHP16.60 per liter, diesel by PHP20.40 to PHP23.90 per liter, and kerosene by PHP6.90 to PHP8.90 per liter.

While acknowledging that higher fuel prices and peso depreciation could affect businesses, Lee said this does not automatically lead to closures. “Manufacturing actually is mid- to long-term. It’s a long-term thing. It’s an ongoing business venture. So, it’s not something like if there is a spike in oil prices, you’re going to, you know, shut down or close your factory. It doesn’t work that way,” she said.

Lee added that companies may need to “tighten belts” to maintain efficiencies, but this does not yet include letting go of employees. “The only thing now is for, let’s say, businesses and manufacturers (to) actually tighten belts right now because that’s expected… But it’s not letting go of people. Not yet. It’s, you know, it’s really too soon to even say that.”

She expressed hope that the conflict in the Middle East would be resolved soon, noting that the duration of the crisis will largely determine its long-term impact on the sector. “If the duration of this war is not prolonged more, then I think that’s okay. The plans can still continue. But if it gets a bit more prolonged, then that’s when we’re going to… if it’s going to be a year, we might be in trouble already,” Lee said.