Manufacturing companies across the Philippines are currently showing no signs of workforce reductions, even as the nation grapples with a sharp spike in fuel prices, a senior industry official confirmed on Thursday, March 19, 2026.
No Immediate Layoffs Reported
Elizabeth Lee, chairperson of the Federation of Philippine Industries, Inc. (FPI), stated that manufacturers are not yet letting go of employees at this time. She made these remarks during the sidelines of the FPI Summit 2.0 held in Bonifacio Global City.
"Just generally, we are not getting information that the manufacturers are actually, you know, letting go of people at this point in time," Lee emphasized.
Government Measures Provide Relief
Lee acknowledged the government's efforts to mitigate the impact of rising oil prices. "I think the government itself is, thank God, doing what it needs to do to safeguard us, the citizens, from these high oil prices," she said.
Recent government actions include distributing fuel subsidies to public utility vehicle drivers and exploring the procurement of up to two million barrels of oil to bolster the country's buffer stock.
Fuel Price Increases Detailed
Domestic oil prices have surged dramatically, with increases exceeding P20 per liter in just one week. This spike is attributed to rising global oil prices driven by ongoing conflicts in the Middle East.
- Gasoline products saw hikes ranging from P12.90 to P16.60 per liter.
- Diesel prices increased by P20.40 to P23.90 per liter.
- Kerosene prices rose between P6.90 and P8.90 per liter.
Long-Term Business Perspective
Lee explained that manufacturing is inherently a mid- to long-term venture, which means companies do not typically shut down factories immediately in response to temporary fuel price spikes.
"Manufacturing actually is mid- to long-term. It's a long-term thing. It's an ongoing business venture. So, it's not something like if there is a spike in oil prices, you're going to, you know, shut down or close your factory. It doesn't work that way," she clarified.
Focus on Efficiency Over Layoffs
While acknowledging that rising oil prices and peso depreciation will have serious effects, Lee stressed that businesses are currently focusing on efficiency measures rather than workforce reductions.
"The only thing now is for, let's say, businesses and manufacturers (to) actually tighten belts right now because that's expected," she added. "Tightening your belt in terms of efficiencies. We have no choice. We have to do it right now. But it's not letting go of people. Not yet. It's, you know, it's really too soon to even say that."
Concerns Over Prolonged Conflict
Lee expressed hope for a swift resolution to the Middle East conflict, noting that the duration will be a critical factor.
"It really depends on the duration. So, if the duration of this war is not prolonged more, then I think that's okay. The plans can still continue. But if it gets a bit more prolonged, then that's when we're going to... if it's going to be a year, we might be in trouble already," she warned.
Overall, the Philippine manufacturing sector remains resilient, with companies adopting cautious strategies to navigate the current economic challenges without immediate job cuts.
