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US dollar banknotes are laid on a table as the Philippine peso falls to historic low, breaching the ₱60-to-$1 level, when exchange rates closed on March 19, 2026 amid ongoing global economic pressures driven by escalating tensions in the Middle East. (Photo by Edd Castro / Manila Standard)
Analyst fears oil shortage; gov’t boosts reserve
The Philippine peso plummeted to a new record low of 60.10 against the US dollar Thursday, losing 58 centavos from Wednesday’s close of 59.52 as intensifying external pressures weighed on the domestic market and the government scrambles to shore up supplies amid hostilities in the Middle East.
Data from the Bankers Association of the Philippines showed the local currency opened at 59.90 against the greenback and touched an intraday low of 60.40.
Philippine Institute for Development Studies (PIDS) senior research fellow John Paolo Rivera said escalating oil prices increase the demand for dollars to fund imports while risk-off sentiment continues to bolster the greenback.
“Breaching 60 is more of a stress signal from global conditions, especially oil and dollar strength than a breakdown in domestic fundamentals,” he said. “The key question now is persistence whether these pressures remain, the peso could stay near or above this level in the near term.”
An industry source warned that the peso’s depreciation could trigger a “fuel shortage problem,” noting that the Philippines’ oil reserve is expected to last only until the end of April.
The government earlier announced that the PNOC Exploration Corporation will procure 2 million barrels of oil to boost the country’s buffer stock.
In an interview with ABS-CBN News, Energy Secretary Sharon Garin yesterday said an initial 250,000 to 300,000 barrels of diesel will arrive next week to augment supply.
Lawrence Fernandez, Meralco vice president and head of utility economics, said the continued peso depreciation would also put pressure on generation charges. “In the case of Meralco, close to 60 percent of generation costs are dollar denominated,” he said.
Because fuels support more than 70 percent of the country’s power generation, the DOE is monitoring both prices and supply levels to prevent electricity service disruptions.
In a recent advisory, the department said daily assessments of fuel supply are “extremely necessary.” The agency directed the Power Sector Assets and Liabilities Management Corp., National Power Corp., generation companies, and off-grid stakeholders to submit a daily operations report on fuel inventory.
The DOE said the reporting requirement is intended to track current and incoming stocks, allowing the agency to mitigate the effects of the Middle East crisis.
Meanwhile, the Philippine Rural Electric Cooperatives Association Inc. said the depreciation of the peso creates substantial cost pressures for the power sector.
It said that since the primary components of power generation—specifically imported fuel (coal and LNG)—are dollar-denominated, any currency volatility triggers an automatic escalation in generation costs.
“Compounded by rising global fuel prices and electricity costs driven by ongoing tensions in the Middle East, this situation presents a serious challenge for the power sector. For electric cooperatives, this may result in increased financial strain, particularly in areas with low collection efficiency, potentially affecting their cash flow, operational stability, and capacity to sustain reliable and affordable electricity service,” it said.
President Ferdinand Marcos Jr. on Thursday assured the public the government is eyeing to reopen coal importation to ensure a steady power supply, adding that current fuel stocks for power plants remain sufficient.
In an interview with reporters in Bataan, Mr. Marcos said that the government may restart coal imports for power plants.
“We were trying to move away from coal but because of this crisis, we’ll open up again the importation, the buying of coal so that our power supply will be sufficient in all parts of the Philippines,” the President said.
Mr. Marcos said the government is in talks with partner countries that have available supply which the Philippines can procure.
For its part, the Department of Agriculture said there is sufficient supply of agricultural products, at least for the next 90 days.
“I can safely say that until June or July, we will not have a supply issue for almost everything. We have stocks with the National Food Authority – almost 500,000 tons of rice,” Agriculture Secretary Francisco Tiu-Laurel Jr. said.
He said supply levels for other agricultural products, such as corn and sugar, remain steady.
— Thony Rose Lesaca, Alena Mae S. Flores & Katrina Manubay
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