Fuel Prices Surge as US–Israel–Iran War Impacts Philippines; Philippines Implements Four-Day Work Week for Government Staff

The Philippine government has officially implemented a four-day workweek for government employees, starting next Monday, to curb the economic impact of rising fuel prices triggered by the US–Israel–Iran conflict. President Ferdinand Marcos Jr. announced the emergency measure following an escalation in the armed conflict between Iran, Israel and the United States that threatens energy flows through the Hormuz Strait. Manila’s drastic step is a direct response to fears of global supply shortages. Marcos warned that the effective closure of Hormuz, which handles about a fifth of the world’s oil supply, could push local pump prices next week to 32.35 pesos per litre for kerosene (about Rp31,700) and 17.28 pesos per litre for diesel (about Rp17,000). ‘We are victims of a war that is not of our choosing,’ Marcos said in a statement cited by AFP. Despite ongoing uncertainty over how the conflict will unfold, he said the government has full control to protect Filipinos. In addition to shortening the workweek, Marcos directed all government agencies to cut fuel and electricity consumption by 10 to 20 percent. Out-of-office trips and field activities were banned, while meetings were to be conducted online. The situation is particularly precarious given the Philippines’ heavy reliance on crude oil imports from the Middle East. Beyond the energy threat, the safety of more than two million Filipino migrant workers in the region is at greater risk. In Washington, US Energy Secretary Chris Wright said the US Navy was prepared to escort ships crossing Hormuz. The move aligns with President Donald Trump’s pledge to safeguard global oil supplies. ‘As soon as it is reasonable to do so, we will escort ships through the strait and restore energy flows,’ Wright told Fox News. Tensions in the Middle East have risen after Brent crude traded around $90 per barrel. Militant actions also reportedly extended to Iraq, with four drones attacking Basra Airport and southern oil facilities, including the Burjesia complex and Rumaila oil field operated by BP. Typhoon Fung Wong struck the northeast of the Philippines on Sunday night, bringing strong winds and heavy rain with a risk of floods in Luzon as the storm moved west. The government declared a national emergency after Typhoon Tino or Kalmaegi caused extensive damage and at least 142 deaths. President Marcos Jr ordered all government agencies, including the military and coast guard, to carry out evacuations and rescue operations. Analysts Boni Hargens supported Deputy Speaker of the House Sufmi Dasco Ahmad’s calls for national unity. PT Pupuk Indonesia said the Middle East conflict would not significantly affect its operations. Indonesia’s government decided to suspend or put on hold discussions about participation in the Board of Peace (BOP) mechanism. CoRE Executive Director Mohammad Faisal urged the public not to panic-buy fuel as geopolitics intensify. Brent crude prices remained high, around US$84 per barrel, following the IRGC attack in Hormuz. See implications for subsidised fuel prices and the Rupiah exchange rate today.