ING: The Philippines may feel the impact of rising oil prices sooner

⑴ Deepali Bhargava from ING Group stated in a report that, compared to most Asian countries such as Thailand or Indonesia, the Philippines may feel the impact of rising oil prices sooner. ⑵ She pointed out that the Philippines has limited fuel buffer capacity, domestic price transmission is rapid, and there is a structurally wider current account deficit. ⑶ Bhargava said that as one of the most oil-dependent economies in the region (similar to Thailand, South Korea, Vietnam, and Singapore), the continued rise in crude oil prices has significant external effects. ⑷ She also mentioned that if Middle Eastern supply tightens, fertilizer prices may rise, which will eventually put pressure on crop yields and food prices later this year. ⑸ Given the Philippines' reliance on imported food and fuel, the country is highly susceptible to such cost impacts.