MANILA, Philippines — Vice President Sara Duterte has announced sweeping cost-cutting measures in her office, citing the impact of soaring oil prices and economic uncertainty caused by the ongoing Middle East crisis. The Office of the Vice President (OVP) confirmed that several planned events will be canceled to reduce expenses.

Duterte revealed on March 26, 2026, that her office will implement austerity measures to cope with rising operational costs. “We are implementing cost-cutting measures amid the soaring prices in the Philippines,” she said in a video message, noting that the OVP will cancel two major events: a celebration for the LGBTQ community and the office’s four-year accomplishment report.

The Vice President explained that the decision was made to prioritize essential functions and redirect resources toward more urgent needs. She warned Filipinos to prepare for possible job losses and food insecurity, stressing that the economic challenges could persist until the end of the year.

The announcement comes as the Philippines grapples with the effects of restricted oil shipments through the Strait of Hormuz, where Tehran has banned vessels linked to the United States and Israel following recent military clashes. With the country heavily dependent on imported oil, the situation has triggered fuel price hikes that ripple across all sectors.

Meanwhile, the House of Representatives has also adopted its own cost-cutting measures, including modified work arrangements and stricter electricity consumption management, as part of efforts to reduce government spending.

Duterte’s announcement underscores the growing pressure on government agencies to tighten budgets and prepare for prolonged economic strain. Analysts note that while the OVP’s measures are symbolic compared to larger fiscal policies, they reflect the broader reality of austerity that may soon affect multiple branches of government.

This move highlights the administration’s attempt to balance fiscal discipline with public service delivery, as the Philippines braces for continued volatility in global energy markets and its impact on domestic inflation.