COPING WITH THE IRAN WAR ENERGY CRISIS

Here are practical ways to get ahead of it and cushion the blow.

By Freida Dario-Santiago

recipesforwellbeing.org

The war in the Middle East becomes a cost-of-living crisis. Soaring fuel prices have begun to affect the prices of transportation services and travel costs, cascading down to everyday consumer goods.

When oil becomes expensive, companies don’t just absorb those costs, they pass them on to you and me, the consumers. So, anything from airfare to household goods and groceries becomes more expensive when the base cost of crude rises. 

Energy Sec. Garin urges Filipinos to conserve. “We should all conserve and lower our consumption by 50%. Carpool, work from home. If you don't need to go to the mall, stay home or don't use your car. And please, no hoarding.

But instead of letting the fear and anxiety from the heightened global uncertainty get to us, let’s try to keep the worry at bay by not panicking. It would be wise to be prudent.

To be prudent means to act with or show care, wisdom, and good judgment, especially in avoiding risks and managing resources for the future. It involves being cautious and thinking ahead to make thoughtful, rather than hasty decisions. This is where budgeting (managing expenses) and conservation skills come in handy.

BUDGETING TIPS

Living in Boracay in the Western Visayas means we feel the Middle East chokehold faster because almost everything we eat or use is shipped in by sea or air. When global oil hits $95+, our “island premium” gets even heavier. The goal is to try to get ahead of the crisis by cutting recurring costs and hidden leaks in your budget. 

1. Energy Audit

Every kilowatt counts.

• Unplug rule

Unplug appliances not in use. Unplug chargers, microwave ovens and standby TVs. These “vampire” appliances (the little lights on your TV or microwave) can account for up to 10% of a monthly bill.

• 2-Degree rule and optimization

Humidity is high, but setting your AC to 25°C or 26°C instead of 23°C can save you hundreds of pesos a month. Clean your aircon filters now. A dirty filter makes the unit work 15% harder. If possible, set the timer to turn off two hours before you wake up, and the room will stay cool enough until morning.

• Reallocate subscriptions

Be ruthless. If you haven’t watched that streaming service in two weeks, kill it and save ₱500–₱1,000 monthly. Reallocate that cash to savings. While you’re at it, audit your apps. Cancel that streaming service or gym app you haven’t used in 30 days. That ₱129-₱499/month is better spent on your rising electricity bill.

• Online shopping apps pause

Give your wallet and the planet a break by hitting “snooze” on your shopping apps. Avoiding impulse buys stops the binge-shopping cycle and cuts the massive energy required for global shipping. It’s a simple way to save money while reducing your environmental footprint.

2. Strategic Grocery Shopping

Food prices rise when shipping costs go up. Shipping costs from Iloilo or Manila to Caticlan, then the barge to Boracay, add a massive markup.

• Talipapa or wet market over grocery shopping

Skip the imported canned goods at the mall. Buy local produce at the local wet markets. Local veggies aren’t tied to global shipping routes as much as imported ones.

• Unit price rule

When buying staples like rice or detergent, look at the price per kilo. Buying a 5kg bag of rice is often 10-15% cheaper than buying 1kg five times, which is crucial when rice prices are volatile.

• Generic and house brands over branded

Switch to store or supermarket brands for cleaning supplies, grains and canned goods. They are often 20-30% cheaper for the same quality, because you aren't paying for the marketing and shipping of a global brand.

• Shopping list

Before shopping, make a list. Panic buying often leads to duplicates that expire before use.

• No hoarding. Stock up slowly.

Taking more than what you need leaves another family in need. However, if you see a sale on non-perishables (canned goods, rice, oil), buy one extra. It’s better to have it at today’s price than a possibly higher price next month.

3. Transportation Strategy

Gasoline prices in Aklan are often higher than in Manila due to logistics.

• Consolidate your errands 

Never leave the house for just one thing. Plan your trips and map out a loop. If you live in Diniwid but need to go to Balabag, do your banking, grocery and pharmacy runs in one trip.

• Hop-On, Hop-Off

Use the shared bus and e-trikes instead of chartering a private ride. Even better, walk!

4. Emergency Fund

Supply chains to islands are fragile. If you have a small emergency fund, try to add a “buffer” fund to it. 

• 5% Buffer

Aim to set aside just 3-5% more than usual this month to act as a shock absorber for next month’s utility bills. If the April spike is lower than expected, you have a head start for May.

To our valued guests, these tips could also apply to you when you return home from your holiday.

As the adage says, hope for the best but plan for the worst. Come on, people, we’ve survived a global pandemic that lasted three years, only three years ago. We can do this!