MANILA, May 14 (Xinhua) -- A fresh surge in global oil prices has cast a shadow over the Philippines as domestic diesel prices once more than doubled in the past two months. From commutes to meals, from street vendors to ordinary households, livelihoods in the archipelagic nation, reliant on imported oil for over 90 percent of its energy needs, have been hit hard.
In late March, the Philippines declared a national energy emergency and unveiled a package of measures to counter soaring energy prices, but overall inflation increased to 7.2 percent in April from 4.1 percent in March, adding to the strain on households.
OIL CRISIS TAKES TOLL
Jeepney driver Arturo once made a living on affordable fares, but now he no longer takes passengers and lives in his vehicle with his wife and granddaughter.
"Squeezed by soaring fuel costs, I could only earn 200 pesos even working for more than 12 hours, barely enough to pay rent and electricity bills," he said.
The Philippine government has offered cash aid and fuel subsidy for transport workers, but only a fraction have successfully claimed support. Long queues up to two hours occupy working time and deter many from applying.
"Wages stay the same, yet living costs have risen by 10 percent," said Michael Andrade, a guide in Boracay Island, a well-known tourist resort in the Philippines. He added that the costs of water activities relying on gasoline boats have been pushed up, resulting in tourists being more cautious with their spending and consequently hitting his income.
Rising fuel prices have spillover effects across multiple industries. According to the country's department of agriculture, rice prices will climb further during the September harvest season as domestic fertilizer prices have doubled compared with pre-crisis levels.
Elizabeth Lee, chairperson of the Federation of Philippine Industries, said manufacturers navigate a difficult two-front challenge.
"On one side are rising costs for fuel, electricity, freight, imported inputs and raw materials. On the other is a softer demand as inflation reduces household purchasing power," Lee said, adding that prolonged shock eventually feeds into local costs, business confidence and investment timing.
Official data shows remittances account for 7.3 percent of the Philippines' GDP in 2025 and around 2.4 million Filipinos working and living in the Middle East. While facing danger and supporting their families back home, they face fresh additional worries -- the peso has depreciated by more than 6 percent since the crisis erupted.
According to a survey by the Philippines' Synergy Market Research and Strategic Consultancy, 44 percent of Filipinos aged 18 and above said they struggled to meet financial needs using their monthly earnings in early April.
EMBRACING CHINA'S GREEN DRIVE
As Filipinos struggle to make ends meet, a green wave from China has been emerging in the Philippines, offering new alternatives to ease people's living burdens.
In Imus City, Cavite Province, staffers have recently adopted solar-panel-equipped electric tricycles manufactured in east China's Jiangxi Province to deliver drinking water to local communities.
Charles Kris, person in charge of the station, said the new electric vehicles are expected to cut operational costs by nearly 70 percent compared with gasoline motorcycles previously used for water jug delivery.
"Chinese electric vehicles feature low-energy consumption and long battery range. We have kept water prices unchanged. This benefits our around 300 residents," said Kris.
In a BYD dealership in Manila, crowds flocked to test-drive new energy vehicles. A staffer said that more than a dozen new energy vehicles (NEVs) were sold per day recently, with customers facing a one-month waiting period for vehicle delivery amid skyrocketing orders.
Data from BYD Cars Philippines shows that sales surged by 446 percent to 26,122 units in 2025 from just 4,780 units sold in 2024, making it the third-largest automaker in the Philippine market last year.
Mon Ibrahim, executive member of the Philippines' National Innovation Council, noted that Chinese automakers leverage cost-efficient production methods to offer competitively priced vehicles without compromising on quality or features.
Many Chinese brands are at the forefront of electric vehicle innovation, offering advanced battery technologies, longer driving ranges and innovative features like AI-assisted driving systems, he said.
Chinese NEV brands excel at capturing middle and low-end markets in Southeast Asian countries, while also making efforts to expand into the high-end market, responding to market demand and consumer feedback rapidly with flexible and timely adjustments, said Christopher Len, an associated senior research fellow with the Institute for Security and Development Policy. Enditem
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