Small businesses seek financial aid amid oil crisis

People visit the the DTI Food Festival at the SM Mega Trade Halls 1 to 3 on May 30, 2025 which features over  250 MSME exhibitors of heritage-inspired food products from Luzon, Visayas, and Mindanao. Jonathan Cellona, ABS-CBN News/File

MANILA -- Micro and small businesses in the Philippines are feeling the pinch as the war in the Middle East drags on, pushing oil prices even higher.

According to the Employers Confederation of the Philippines (ECOP), many are no longer able to cope with rising operational costs, especially those heavily reliant on fuel.

"Ninety percent ng enterprises natin, micro. Talagang hindi na kaya, dumadaing na nga para sa ayuda yung marami e," said ECOP President Sergio Ortiz-Luis Jr.

An economist is urging Congress to fast-track the passage of an emergency spending bill to allow the government to expand its subsidy program to other affected sectors beyond transportation.

READ: Senator proposes path to manage effects of Middle East crisis

READ: Senator pushes for immediate fuel rationing

"Kasi hindi naman talaga na-anticipate ng 2026 budget yung ganitong klaseng kalawak na krisis. Although may mga emergency funds here and there, kakailanganin talaga ng bilyon-bilyong piso para doon sa sustained na ayuda," said JC Punongbayan, assistant professor at the University of the Philippines Diliman School of Economics.

For Punongbayan, providing financial aid to vulnerable populations is the more prudent thing for the government to do rather than suspending or lowering fuel excise tax collections.

"Maganda siyang pakinggan, popular siya na ideya pero meron itong consequences sa kaban ng bayan, sa fiscal capacity ng ating gobyerno… Kulang na nga yung pera ng gobyerno tapos babawasan pa natin yung pera na pwede sana ilaan sa mga mahihirap," he said.

The Makati Business Club (MBC) is also against such proposals.

"Given the limited fiscal space of the government, we believe that the suspension of excise taxes on fuel will further erode the government's ability to provide the short-term targeted assistance needed while other medium and long-term projects are being implemented," the group said in a statement.

READ: How Middle East war is driving up shipping costs

Another concern, according to Punongbayan, is the expected increase in the prices of basic commodities driven by the continued weakening of the peso against the US dollar.

The peso-dollar exchange rate closed at P60.16 to $1 on Wednesday, April 1, 2026.

"Tuwing humihina yung piso kontra dolyar, nagiging mas mahal yung imports. Asahan na lalong tataas ang inflation rate o yung bilis ng pagtaas ng presyo ng mga bilihin. Sinasabi ng DepDev (Department of Economy, Planning, and Development) aabot ng double digits pagdating ng May kasi hindi lang naman langis ang apektado," warned Punongbayan.

"Dapat nating bantayan especially yung presyo ng pagkain," he added.

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