[Vantage Point] One peso, two fortunes: The hidden energy bill

The depreciation of the peso is more than just a number; it has become a critical factor in the economic lives of Filipinos. As of October 27, 2026, the peso closed at P64.17 per dollar, marking a new low that has significant implications for families across the country.

For overseas Filipino workers (OFWs) like Elena, a nurse in California, the weakening currency has a silver lining. A transfer of $1,000 now converts to P64,000, up from P60,000 when the exchange rate was P60. This increase in remittances provides a temporary financial boost. However, for local wage earners such as Ramon, a delivery driver, the same currency movement translates to higher costs for everyday essentials, from fuel to groceries.

The Hidden Costs of Energy Dependency

The Philippines' reliance on imported energy exacerbates this economic divide. The country is projected to face a staggering $19.1 billion current-account deficit this year—equivalent to 3.8% of its GDP—largely due to the cost of imported fuels. This dependency not only drains foreign reserves but also impacts household budgets across the nation.

In 2025, spending on liquefied natural gas imports surged by 52.6%, reaching $1.171 billion. This increase has been driven by both higher physical volumes and escalating unit prices, leading to a significant rise in energy generation costs. For instance, if the price of fuel rises from $10 to $30 per unit, consumers can expect their electricity bills to skyrocket as well.

• Rising operational costs for businesses reliant on imported goods.
• Potential capital flight due to mounting economic pressures.

This duality in economic experience highlights a structural imbalance in the Philippine economy: while OFWs benefit from favorable exchange rates, local workers bear the brunt of rising costs. The government faces a pressing challenge to reduce reliance on imported energy and boost local production to stabilize the economy.

As energy prices fluctuate globally and the peso continues to weaken, the economic reality for many Filipinos remains precarious. A sustainable recovery will require more than just temporary gains for some; it necessitates a comprehensive strategy to address the fundamental vulnerabilities in the Philippine economy.