Rising Fuel Costs Threaten Philippine Small Businesses

Photo courtesy of Philstar

Rising fuel prices in the Philippines could significantly impact micro, small, and medium enterprises (MSMEs), which constitute a majority of the nation's businesses, warned the Philippine Chamber of Commerce and Industry (PCCI). PCCI President Perry Ferrer emphasized that higher energy costs might jeopardize the viability of these businesses, which typically operate on narrow margins. This warning comes as MSMEs, representing 90% of the business community, face critical pressure from escalating operating expenses.

Get today's headlines by email

Many MSMEs find even minor increases in fuel, transportation, and logistics costs challenging. Ferrer highlighted that such financial burdens seriously threaten their profitability and sustainability. Recognizing energy as essential to economic operations, he noted the necessity of maintaining stable energy prices to ensure economic health. The stability of energy costs, particularly fuel and electricity, is identified as crucial for the economy's functioning.

The PCCI supports governmental efforts to mitigate fuel price increases, intending to return costs to previous levels. Ferrer mentioned that measures to lower fuel expenses would benefit the business community, predominantly affecting MSMEs, which account for 99.6% of Philippine businesses. The potential shutdown of these enterprises poses a significant threat to economic stability.

Transport groups have advocated for the removal of excise and value-added taxes on fuel as a relief measure. President Marcos is considering tax reductions while the Middle East conflict continues to disrupt oil supplies globally. Such legislative adjustments could alleviate the financial burden on businesses heavily dependent on fuel and energy, reported Philstar.

Join the discussion?

  Adapted by ASEAN Now · Philstar · 12 Mar 2026