DUBAI: The Philippine government will suspend the collection of excise taxes on petroleum products if global crude oil prices hit $80 a barrel to soften its impact on Filipino consumers, a presidential spokesperson said Tuesday.
The announcement comes after oil companies on Tuesday implemented their biggest price hike for gasoline products so far this year of 1.6 pesos per liter ($0.03), and prices of diesel and kerosene products up by about 1 peso a liter, with what they claimed was to reflect ‘movements in the international oil market.’
“Excise taxes will be suspended when prices, If I am not mistaken, reach $80 [per barrel]. We are ready when to suspend the collection when oil prices reach that level,” presidential spokesperson Harry L. Roque said during a press briefing.
“The collection will be suspended,” he said, as part of contingencies to protect the public from a possible oil-price shock.
The new duties on fuel – and other items such as cars, tobacco and sugary drinks – are part of the Tax Reform for Acceleration and Inclusion (TRAIN) law which took effect at the start of the year.
The first tranche of the Philippine government’s tax restructuring has been blamed for the rise in consumer prices, which rose 4.5 percent in April and breached the year’s target of between 2 percent and 4 percent.
Finance Secretary Carlos Dominguez, however, said the roughly two-thirds of the April inflation rate was due to the demands of a rapidly-expanding economy, with the TRAIN accounting for only 0.4 point of the increase instead of the estimated 0.7 point.
“We will coordinate with the Department of Finance and the Department of Budget and Management if the benefits [for poor families] aside from the P200 monthly subsidy [as part of the amelioration program] have been released,” Roque said. “There are still other benefits to be given to soften the effects of TRAIN.”
Philippine government to suspend excise taxes on petroleum products if oil hits $80
Philippine government to suspend excise taxes on petroleum products if oil hits $80
OPEC+ to advance oil output hike plan, oil drops
LONDON/MOSCOW: Eight OPEC+ countries agreed on Thursday to advance their plan for oil output hikes by increasing oil output by 411,000 barrels per day in May, prompting oil prices to extend earlier losses.
“This comprises the increment originally planned for May in addition to two monthly increments,” OPEC said in a statement.
Oil, which was already down over 4 percent on US President Donald Trump’s announcement of tariffs on trading partners, extended declines after the OPEC statement, with Brent crude dropping over 5 percent toward $71 a barrel.
Saudi drilling firm ADES enters Brazil with $85.1m charter agreement
RIYADH: Saudi exploration service provider ADES Holding Co. has entered the Brazilian market through an $85.1 million charter agreement.
The deal, which was made with Luxembourg’s Constellation Oil Services Holding, will use ADES’ jackup rig, Admarine 511, to support a drilling contract with Petrobras, Brazil’s state-owned energy giant.
The agreement marks a significant expansion of ADES’ Latin American operations and underscores the company’s strategy of entering new markets through alternative contracting models.
The charter, which has a duration of about 38 months, includes an optional 472-day extension that could bring the total contract term to 4.5 years.
The Admarine 511 rig is currently undergoing preparations at the Arab Shipbuilding and Repair Yard in Bahrain ahead of deployment, with drilling operations in Brazil expected to commence in the fourth quarter of 2025.
CEO of ADES, Mohamed Farouk, commented on the new agreement, saying: “We are excited to enter the Brazilian market through this strategic Charter with Constellation to support Petrobras, Brazil’s national oil company.”
Farouk added: “This agreement not only expands our global footprint but also enhances our business sustainability with a long-term contract that strengthens our backlog and provides extended cash flow visibility.”
The company estimates the additional backlog from the charter to be SR319 million ($85.1 million), including mobilization and demobilization fees.
ADES noted that while Constellation will operate the rig locally, the charter structure ensures that a majority of the revenue generated will contribute directly to ADES’ profitability.
Listed on the Saudi stock market, ADES saw a 1.23 percent drop in its share price to SR16.12 as of 12:30 p.m. Saudi time.
The deal comes on the back of strong financial performance by ADES Holding in 2024, reflecting the group’s continued growth trajectory.
The firm recorded an 80.54 percent increase in net profit, reaching SR816.19 million, up from SR452.07 million in 2023.
Revenues also surged by 43.10 percent year-on-year to SR6.19 billion, compared to SR4.33 billion the previous year.
Earnings per share rose to SR0.73 in 2024, up from SR0.59 in 2023, underscoring improved profitability and operational efficiency.
Farouk further stated that the firm selected the charter model to navigate Brazil’s operational landscape more effectively.
“Recognizing the unique challenges of each market, ADES strategically opted for a Charter model that facilitates a seamless entry into Brazil while maximizing profitability and delivering higher returns for our shareholders,” Farouk added.
Egypt’s non-oil sector sees minor setback in March, Lebanon’s PMI declines: S&P Global
RIYADH: Egypt’s non-oil private sector saw a slight decline in business conditions in March, with the country’s Purchasing Managers’ Index easing to 49.2 from 50.1 in February, according to S&P Global.
In Lebanon, the PMI slipped to a five-month low of 47.6, reflecting softer economic activity amid regional uncertainty and subdued tourism.
A PMI reading above 50 indicates expansion, while a figure below that signals contraction.
The trends in Egypt and Lebanon contrast with broader regional performance, where Saudi Arabia, the UAE, and Kuwait maintained expansionary momentum in February, with PMIs of 58.4, 55, and 51.6, respectively.
Egypt’s non-oil sector slips in March
Weakened demand drove Egypt’s non-oil private sector into contraction territory, prompting firms to cut back on activity and purchases.
David Owen, senior economist at S&P Global Market Intelligence, said: “The non-oil sector suffered a minor setback in March, with a decline in business conditions undermining the more expansionary tone set in the first two months of the year.”
However, he noted that Egypt’s PMI remained above its long-run trend, suggesting businesses were still in a relatively stable position.
The latest PMI survey indicated a significant easing of inflationary pressures, with input costs rising marginally — the slowest pace in nearly five years.
S&P Global also noted that firms reported only a slight increase in selling prices, signaling a more stable pricing environment.
“Firms will be particularly buoyed by the improved picture for inflation. Although headline inflation plummeted from 24 percent to 12.8 percent in February mostly due to base effects, a softening of input cost increases according to the March PMI data suggests there could be further reductions going forward,” said Owen.
He added: “Part of this softening was linked to a weaker US dollar, which remains greatly influenced by the evolving state of US trade policy.”
According to the report, non-oil companies in Egypt saw a drop in business activity for the first time this year, primarily due to weaker new order intakes.
S&P Global also highlighted that both domestic and international demand remained subdued in March, prompting firms to cut operations and spending.
Surveyed companies reported a reduction in headcounts as weak demand and limited capacity pressures dampened workforce needs.
On a positive note, the construction sector performed well in March, with survey data showing robust growth in both output and new work.
However, business activity in the manufacturing and wholesale and retail sectors remained subdued.
Looking ahead, companies expressed concerns about the economic outlook, with output expectations falling to one of the lowest levels on record.
“The outlook for the local economy is therefore somewhat unclear, which is reflected in a diminishing level of business expectations,” added Owen.
Egypt is implementing a series of reforms under its the International Monetary Fund-backed economic program.
In March, it secured a $1.2 billion disbursement from the IMF, bringing total funding under its economic reform program to $3.2 billion. The IMF also approved a $1.3 billion facility for climate-related reforms.
While the country’s gross domestic product growth rebounded to 3.5 percent in early 2024-25 and inflation has eased, fiscal challenges remain. A $6 billion drop in Suez Canal receipts widened the current account deficit to 5.4 percent of GDP in 2023-24, despite spending controls helping achieve a 2.5 percent fiscal surplus.
Lebanon’s PMI falls to five-month low
A separate S&P Global report, published in association with BLOMINVEST Bank, revealed that Lebanon’s PMI declined to 47.6 in March, down from 50.5 in February and 50.6 in January.
The drop was attributed to weaker output and new orders, driven by subdued tourism and ongoing regional instability.
Surveyed companies reported that restrained client purchasing power and consumer hesitancy toward non-essential spending led to a contraction in new order intakes at the end of the first quarter.
“The BLOM Lebanon PMI for March 2025 fell to a five-month low at 47.6, indicating a change of course in the economy toward instability,” said Ali Bolbol, chief economist and head of research at BLOMINVEST Bank.
He added: “The spillover effects from clashes on the Syrian coast, to renewed escalation between Israel and Hezbollah, to delays in the disarming of the latter have all left their de-stabilizing imprint on the Lebanese private sector.”
According to the report, Lebanese firms saw a decline in foreign sales, with challenging shipping conditions, high export costs, and regional instability acting as headwinds for international trade.
S&P Global noted that the drop in new business intakes helped firms clear backlogs of work for the first time this year.
Signs of spare capacity also prompted businesses to trim their workforce, though job cuts remained mild, affecting just 1 percent of surveyed firms.
Regarding purchasing activity, Lebanese private sector firms exercised more caution than in February, with buying volumes largely unchanged. However, surveyed companies reported faster shipping times for newly purchased items.
Despite the slowdown, business sentiment remained optimistic, with growth expectations reaching their highest level since the survey began in May 2013.
“The only worthwhile news from the March PMI results is that expectations of a better outlook are still positive, though at a more subdued level,” concluded Bolbol.
Last month, the IMF welcomed Lebanon’s request for support in tackling its economic crisis.
After more than two years without a president, Lebanon elected a new head of state in January and formed a government led by Prime Minister Nawaf Salam. In February, the IMF signaled openness to a new loan agreement following talks with the finance minister.
The previous caretaker administration failed to implement the reforms required for an IMF bailout to rescue the collapsed economy.
Saudi Arabia has highest number of Arab billionaires: Forbes
RIYADH: Saudi Arabia has solidified its position as the leading hub for billionaires in the Arab world with 15 making it onto the Forbes global 2025 list — the highest in the region.
According to the Forbes World’s Billionaires ranking, the wealth of the Saudis featured totaled $55.8 billion, representing 43.4 percent of the combined net worth of all Arab billionaires.
Leading the Saudi — and Arab — billionaire rankings is Prince Alwaleed bin Talal, with a net worth of $16.5 billion.
In the Middle East and North Africa region, the number of Arab billionaires has risen to 38, spread across nine countries, with a combined fortune of $128.4 billion— more than double last year’s total of $53.7 billion.
Globally, the billionaire population has surpassed 3,000 for the first time, reaching 3,028 individuals— an increase of 247 from 2024. Their total net worth has also climbed to $16.1 trillion, up nearly $2 trillion from the previous year. The US remains the leader with 902 billionaires, followed by China and India.
“It’s another record-breaking year for the world’s richest people, despite financial uncertainty for many and geopolitical tensions on the rise,” said Chase Peterson-Withorn, Forbes senior editor, wealth, adding: “And, from Elon Musk to Howard Lutnick and the other billionaires taking over the U.S. government, they’re growing more and more powerful.”
Saudi resurgence driven by new wealth
The Kingdom’s strong showing comes after a surge in initial public offerings on the Saudi Exchange post-COVID-19, propelling 14 new billionaires onto the list.
Other prominent Saudi figures include healthcare magnate Sulaiman Al-Habib, with a fortune of $10.9 billion, and diversified business leaders Emad and Essam Al-Muhaidib, whose wealth stands at $3.8 billion and $3.6 billion, respectively.
The UAE followed with five billionaires holding a combined $24.3 billion, including real estate tycoon Hussain Sajwani at $10.2 billion and newcomers Hussain Binghatti Aljbori and Hussain Mohamed Alabbar.
Egypt also has five billionaires, led by construction and investment mogul Nassef Sawiris, with a net worth of $9.6 billion.
Top Arab billionaires reflect diverse industries
The wealthiest Arabs span industries from real estate and healthcare to telecom and investments.
Among the top names are the UAE’s Abdulla Al-Futtaim, with $4.7 billion in the automotive industry, and Qatar’s Sheikh Hamad bin Jassim Al-Thani, with $3.9 billion in the investment sector.
This year’s rankings underscore the Kingdom’s growing economic influence, with its billionaire count outpacing other Arab nations. The rise in regional wealth highlights the expanding opportunities in Gulf markets, particularly in real estate, healthcare, and finance.
Elon Musk retained his position as the world’s richest person with a net worth of $342 billion, fueled by his ventures in electric vehicles, space exploration, and artificial intelligence.
Close behind is Meta CEO Mark Zuckerberg at $216 billion, followed by Amazon founder Jeff Bezos at $215 billion, as technology giants continue to dominate the upper echelons of wealth.
Oracle co-founder Larry Ellison ranks fourth with $192 billion, while Bernard Arnault, the French luxury magnate behind LVMH, rounds out the top five with $178 billion.
These five individuals represent a combined net worth of over $1.1 trillion, underscoring the influence of tech innovation and global consumer markets in shaping modern fortunes.
PIF’s Lucid’s quarterly deliveries rise, Amazon-backed Rivian’s fall sharply
BENGALURU: Electric automaker Lucid posted a 58 percent jump in first-quarter deliveries on Wednesday as it lowered prices of its vehicles, while peer Rivian Automotive reported a 36 percent decline.
The Public Investment Fund-backed Lucid has also offered incentives including cheaper financing to woo customers away from less expensive hybrid vehicles amid high interest rates.
However, the company estimated revenue between $232 million and $236 million for the first quarter ended March 31, below Wall Street estimates of $256.3 million, according to LSEG-compiled data.
Shares of Lucid and Rivian were down around 5 percent in extended trading.
Lucid delivered 3,109 vehicles during the first quarter, compared with 1,967 in the same period last year. It produced 2,212 vehicles during the quarter ended March 31, up 28 percent, with more than 600 additional vehicles in transit to the Gulf country for final assembly.
Rivian has been battling tough demand as consumers opt for cheaper hybrid and gas-powered vehicles in an uncertain economic and political environment.
“I would say the sector at the moment is out of favor. Over the medium to long term, EVs are still inevitable, and so it’s just going to take some time for these companies to continue to ramp up,” said Andres Sheppard, senior equity analyst at Cantor Fitzgerald.
Rivian CFO Claire McDonough had said in February vehicle deliveries would be lower this year due to soft demand, partially because of the impact of fires in Los Angeles.
Demand could be further pressured as US President Donald Trump’s tariff policies are expected to accelerate inflation and increase prices of automobiles, making consumers wary of committing to big purchases.
Rivian CEO RJ Scaringe had said earlier this year the company expects higher costs from tariffs on Mexico and Canada as it has a supply chain footprint in these countries.
The company delivered 8,640 vehicles in the quarter ended March 31, down from 13,588 a year earlier. But the deliveries exceeded analysts’ estimate of 8,200, according to Visible Alpha.
Rivian produced 14,611 vehicles in the first quarter, compared with 13,980 a year ago. It reaffirmed its annual deliveries forecast.
Lucid and Rivian will report their first-quarter results on May 6.
In January, Lucid Motors has become the first global automotive company to join the Kingdom’s “Made in Saudi” program, which grants the firm the right to use the “Saudi Made” label on its products.
Lucid’s participation in the program follows the launch of its first international manufacturing plant in Saudi Arabia in September 2023.
Located in King Abdullah Economic City, the facility is the Kingdom’s first-ever car manufacturing plant and can currently assemble 5,000 Lucid vehicles annually during its first phase.
Once fully operational, it is expected to produce up to 155,000 electric cars per year.
