Businesses in Cebu are feeling the ripple effects of the ongoing Middle East crisis, as rising fuel costs disrupt operations across industries heavily reliant on transport and logistics.
For a region long known as a central trading hub, the sudden spike in fuel prices has created both immediate strain and a longer-term call for adaptation.
Cebu Chamber of Commerce and Industry (CCCI) President Regan Rex King described the situation as both challenging and eye-opening for the local business community. ‘The fuel crisis has hit us really hard and unexpectedly,’ King said, emphasizing that fuel remains the lifeblood of most enterprises in Cebu.
‘We are dependent on shipping and logistics. From importation to transferring goods, everything uses fuel, so a lot of businesses are really affected,’ he added during the Open Line Media Forum on Tuesday, April 28, 2026.
Despite the impact, King stressed that the situation is not without opportunity. ‘It’s not doomsday. It’s a wake-up call for us to find ways of mitigating these risks,’ he said, noting that similar disruptions may recur in the future.
He pointed to the growing interest in electric vehicles and solar energy as signs that businesses are beginning to explore alternatives to reduce dependence on traditional fuel sources.
For now, many companies are focusing on practical cost-cutting measures. King highlighted simple but effective strategies, such as reducing electricity consumption and optimizing fuel use.
One example is implementing carpool systems within companies.
‘If you have 10 employees each using separate vehicles, that’s 10 vehicles consuming fuel daily. But if you shift to carpooling, that’s a significant reduction already. There’s no one-size-fits-all solution. Each company has to understand where and how it can cut costs,’ he explained. The strain is particularly evident among micro, small, and medium enterprises (MSMEs), which make up about 60% of CCCI’s more than 800 members.
Some businesses have already been forced to temporarily close or scale down operations, with empty storefronts becoming more visible in shopping centers.
‘We are very conscious of helping MSMEs thrive because they are critical to Cebu’s economy,’ King said.
To address this, CCCI has been coordinating with government agencies such as the Department of Trade and Industry (DTI) and its Small Business Corporation (SB Corp), which offers financial support programs for struggling enterprises.
Earlier this month, SB Corp., DTI’s financing arm, introduced a P4-billion MSME Business Fund offering affordable financing with interest rates of less than one percent per month for MSMEs affected by the crisis.
The chamber is also working with Technical Education and Skills Development Authority to address employment gaps by aligning workforce skills with industry needs.
Alongside rising fuel costs, the issue of wage increases has also come into focus.
King acknowledged the need for compassion toward workers but cautioned against measures that could further strain businesses already grappling with high operating costs.
‘We understand that employees depend on us for their daily sustenance. But businesses also need to survive. If costs keep increasing across the board, it could lead to losses and eventually bankruptcy,’ he said.
He emphasized the importance of balance, suggesting that support for workers need not always come in the form of wage hikes.
‘There are other ways to help, like providing basic goods or in-kind support,’ he added.
As Cebu’s business sector navigates these challenges, King remains cautiously optimistic.
‘These are very challenging times, but when a business closes, it doesn’t mean giving up. There’s always a future-we just need to adapt,’ he added.