Manila: A manufacturing group on Monday welcomed this week's fuel price rollback but urged structural reforms to address ongoing competitiveness challenges linked to the Middle East conflict. In a statement, Federation of Philippine Industries (FPI) Chairperson Elizabeth Lee said the oil price cut 'is good news for Philippine industry, and we commend the government for its swift action and implementation.'

According to Philippines News Agency, Lee highlighted that while the rollback, particularly the diesel correction, provides immediate operational relief for purchases made under rollback prices, firms cannot rely solely on temporary price changes and require stable energy policies. She emphasized that geopolitical windfalls should not be the basis for planning, underscoring the necessity for a "durable energy policy."

Lee further explained that fuel costs are deeply embedded in every stage of the manufacturing sector's value chain, affecting raw material procurement, factory operations, logistics, and last-mile distribution. The rising oil prices due to the Middle East conflict have significantly increased costs across industries, adding to the urgency of the situation.

Despite Iran and the U.S. agreeing to a two-week ceasefire, Lee pointed out that uncertainty persists. "The ceasefire is time-bound and we don't even know if it will hold," she noted. "Volatility remains."

Lee proposed measures to address these challenges, such as bolstering "buy local" policies, providing targeted and time-bound support for micro, small, and medium enterprises, as well as energy-intensive sectors, and accelerating the transition to electric vehicles. She also mentioned that a sustained drop in fuel prices could ease costs over time.