DA eases fears over oil-driven food price surge

AGRI-NEWS | Farming Posted on 2026-04-01 05:57:26

MANILA — Agriculture Secretary Francisco Tiu Laurel Jr. on Tuesday sought to reassure the public that fears of a sharp rise in food prices due to soaring oil costs are overstated, noting that worst-case projections do not account for government interventions.

In a statement, the Department of Agriculture (DA) said scenarios presented to the Senate — which assumed crude oil prices reaching USD200 per barrel over six months — were based on extreme conditions and excluded mitigation measures.

“The projections reflected the full impact of rising crude prices without considering the steps the government will take to cushion the effects,” Tiu Laurel said, emphasizing that safeguards are in place to protect consumers.

Concerns have grown amid escalating geopolitical tensions in the Middle East, particularly around the Strait of Hormuz, a key passage for global fuel and fertilizer shipments. The DA noted that a significant share of the world’s urea, ammonia, and phosphate supply passes through this route.

To prepare for possible disruptions, the government is working to secure alternative crude sources through the Department of Energy, including supply arrangements with non-traditional partners such as Russia, to diversify imports.

In support of the agriculture sector, the Fertilizer and Pesticide Authority has been authorized to carry out emergency procurement, while government-linked firms like Planters Products Inc. (PPI) are ready to scale up fertilizer imports.

The DA is also promoting the use of organic fertilizers, such as chicken manure, to lessen dependence on petroleum-based inputs.

Despite global uncertainties, the agency reported stable domestic conditions. Food prices remain generally steady, pork supply is sufficient, and broiler production continues to exceed demand, helping ease farmgate prices.

While risks persist if oil prices remain elevated, Tiu Laurel said the sector is in a stronger position to absorb potential shocks than initial projections suggest.

He also warned traders against taking advantage of the situation, stressing that the government will act firmly against profiteering and hoarding.

NPO News Team | Philippine News Agency - PR

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