The Philippine peso plunged to a historic low of P60.1:$1 on Thursday, breaching the P60 mark for the first time as global oil prices surged following escalating conflict in the Middle East. The local currency shed 58 centavos from the previous day, surpassing the earlier record of P59.87:$1 set on March 16, 2026.
Benchmark Brent crude jumped around 5% to over $108 per barrel after Iran’s Pars gas field, its sector of the world’s largest natural gas deposit shared with Qatar, was struck on Wednesday.
Tehran has since warned that oil and gas facilities in Saudi Arabia, the UAE, and Qatar are “direct and legitimate targets” and urged immediate evacuation.
Local economists cautioned that sustained high crude prices could fuel inflation and slow growth. The Department of Economy, Planning, and Development (DepDev) warned inflation could climb past 7% if the conflict drags on.
Officials are weighing suspension of fuel excise taxes, which could lower pump prices by P10 per liter for gasoline and P6 for diesel.
Bagong Alyansang Makabayan (Bayan) President Renato Reyes Jr. stressed that while dollar remittances and export earnings may rise, the peso’s weakness will make imports and debt repayments more expensive. “Walang kawala sa krisis sa isang malakolonyal at malapyudal na sistema,” he said, underscoring the vulnerability of the Philippine economy.# (RRN)
