Would more drastic measures help Philippines bring down fuel prices?

With fuel prices in the Philippines among the world’s hardest hit by the Iran war, consumer groups are urging the government to take bolder action, including tighter control over pump prices.Economists say the more realistic options are tax relief, targeted subsidies and transport support rather than direct price controls.Sharon Garin, secretary of the Philippines’ Department of Energy, said on a radio programme on Sunday that the country might no longer see diesel at 60 pesos (US$1) per litre because of structural damage to Gulf oil facilities during the conflict.“If the war had only lasted for two weeks, prices would have gone down. But the structural damage has already been done. It will take a long time to fix the facilities,” the energy secretary told Super Radyo dzBB.“Even if the prices go down, it won’t be as fast as its increase. We may never get to reach 60 pesos per litre for diesel.”Commuters wait for public transport along a main thoroughfare in Quezon City on Wednesday. Photo: EPAHer remarks underlined a growing concern: that what began as a wartime price shock may turn into a longer-term energy problem for one of Asia’s most import-dependent economies.