Supply Chain Defense: Palace Vows to Cut “Friction Costs” as Fuel Prices Surge

MANILA, Philippines — Malacañang has signaled a direct intervention in the country’s logistics bottleneck, promising to eliminate “unnecessary checkpoints” and decongest major ports to shield consumers from skyrocketing transport costs.

Executive Secretary Ralph Recto met with 22 top business executives on Monday to address a growing supply chain crisis triggered by the Middle East war. During the meeting, business leaders highlighted a grim reality: diesel fuel now accounts for approximately 70 percent of the total cost of moving cargo from ports to the countryside.

Recto emphasized that delays in the transport of essential goods are directly passed on to consumers. To mitigate this, the government is implementing several key measures:

  • Checkpoint Removal: A directive to streamline the movement of goods, particularly perishable items, by removing redundant local checkpoints.
  • Port Decongestion: A proposal to open new container yards outside the capital is currently under review by the Bureau of Customs for “immediate action.”
  • Truck Ban Exemptions: Vehicles transporting fuel and essential goods have been exempted from the truck ban on major Metro Manila roads.

The meeting followed a separate consultation with representatives from 14 oil companies. Energy Secretary Sharon Garin assured the public that the Philippines currently maintains an oil inventory adequate for the next 50 days, or until late May.

This buffer is critical as the country navigates a “national energy emergency” that has seen diesel prices surge from ₱48 per liter to as high as ₱172 per liter in some areas following the outbreak of conflict in late February.

Recto urged the private sector to adopt energy-saving measures and flexible work arrangements while warning against unfair pricing practices. “This is a time for partnership of all, and not profiteering of the few,” he stated.

Business groups present at the meeting included the Philippine Chamber of Commerce and Industry (PCCI), the Makati Business Club (MBC), and the IT and Business Process Association of the Philippines (IBPAP). The industry leaders also called for the acceleration of online document processing to further reduce administrative delays.


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