PH Vulnerable to Inflation Due to Oil Import Reliance

The Philippines is more vulnerable to inflationary shocks than its Southeast Asian neighbors due to a lack of significant domestic oil production and a strong artificial intelligence (AI) sector, according to Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr.

In a Senate committee hearing on the proposed P7.2 trillion National Expenditure Program (NEP) for 2027, Sen. Risa Hontiveros asked Remolona about the country's higher inflation rate compared to its neighbors.

Remolona explained that the Philippines relies heavily on imported oil and does not have a domestic source of supply like Indonesia and Malaysia, which both produce oil even as they also import it.

'Wala tayong oil talaga. So malakas ang tama talaga sa atin,' Remolona said, referring to the country's reliance on imported oil.