Medical inflation to be felt due to Middle East conflict, says economist

An economist warned of a “medical inflation” resulting from oil price hikes due to the tensions in the Middle East.

According to a "24 Oras" report by Maki Pulido on Friday, the effects of the conflict may soon be felt as prices increase for medical equipment and services.

Professor Emmanuel Leyco said that medical equipment like syringes, surgical equipment, oxygen masks, and gloves uses oil in their raw materials.

The said items are also often sourced internationally, which means increased logistics costs.

“Hindi malayo na magkakaroon sila ng direct impact agad-agaran. Although meron silang mga long-term supply agreement, magkakaroon din sila ng hedging. I-anticipate na rin nila na magtataas ng presyo ito. So, uunti-untiin na rin nila,” Leyco said.

(It is not far-fetched to say that it will have an immediate direct effect. Although they have long-term supply agreements, they will also have hedging. Let’s anticipate that the prices will increase. They’ll gradually do it.)

The Department of Health (DOH) said that they are now looking to mitigate the effects of the conflict on medical services and medicine supply.

“Kasi tumataas ang presyo ng lahat eh dahil nga sa nangyayaring gera, kailangan mag-catch up si PhilHealth at iyan ang pinapatutukan ng Pangulo,” said DOH spokesperson Undersecretary Albert Domingo.

(Because all the costs will increase due to the ongoing war, PhilHealth needs to catch up, and that is what the President is asking us to observe.)

Oil prices spiked once more after several oil-carrying ships were hit along the Strait of Hormuz, causing up to USD$12 per barrel of diesel and USD$30 per barrel of premium or insurance, transportation and profit margin of oil importers.

In the Philippines, the oil price increase was recorded at P15 to P22 per liter of diesel and P13 to P16 per liter of gasoline. —Jiselle Anne C. Casucian/LDF, GMA Integrated News