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Gov’t open to seasonal tariffs for rice

PHILIPPINE STAR/EDD GUMBAN

By Luisa Maria Jacinta C. Jocson, Senior Reporter

MILAN, Italy — The government is open to adopting a seasonal tariff scheme for rice imports to better protect farmers.   

“Yes, we will need to study it. I would say if there are no operational or even legal impediments to it, I would favor it. Because that way, we can stabilize farmers’ incomes and prices that farmers receive,” Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan told BusinessWorld on the sidelines of the Asian Development Bank Annual Meeting here last week.

This comes after the Federation of Free Farmers (FFF) proposed implementing levies that are strategically timed to not clash with the height of the harvest season. Seasonal tariffs would also mean variable rather than fixed duties.

Since July last year, the government slashed tariffs on rice imports to 15% from 35% until 2028 to tame spiraling prices.

Mr. Balisacan said the government would need to study how to implement seasonal tariffs, adding that these used to be a primary instrument of the European Union and the United States prior to the World Trade Organization (WTO).

“Now, we have to find out how you navigate that, because who is following WTO at this time? Everybody’s just changing tariffs everywhere, so we have to find a way to study this.”

A seasonal tariff will shield farmers from the impact of volatile prices, he added.

“What you’re actually doing is establishing a price that you would want the farmers to face. Then when the world prices drop, you raise the tariff so as to keep the price. When the world prices rise sharply, you reduce the tariff. In other words, you’re stabilizing the price faced by farmers. So that’s good,” Mr. Balisacan said.

For the past few months, rice inflation has been on a downtrend after the government implemented several measures to tame the retail prices of the staple.

Apart from lower tariffs, it also declared a food security emergency on rice in February, which allows the release of buffer stocks. The Agriculture department also imposed a maximum suggested retail price on rice earlier this year.

In April, rice inflation further contracted to 10.9% from the 7.7% decline in March.

Data from the Philippine Statistics Authority showed the average price of a kilo of regular milled rice nationwide fell by 13.3% year on year to P44.45 in April. Average prices of well-milled rice dropped by 10.4% to P50.54 while special rice decreased by 6.2% to P60.69.

Despite this, farmers’ groups have said rice prices still remain elevated in most local markets.

The Committee on Tariff and Related Matters (CTRM) is already reviewing the proposal to implement seasonal levies, Mr. Balisacan said.

“From there, they will recommend it to the CTRM Cabinet, and then it will be elevated to the Economy and Development Council, which is formerly the National Economic and Development Authority Board.”

Farmers’ groups like the FFF and Samahang Industriya ng Agrikultura have also recommended bringing the rice tariff back to 35%.

Meanwhile, the Department of Agriculture (DA) said it is also open to considering seasonal tariffs pending further study.

“Conceptually, we are receptive to the idea and we’re willing to consider many ideas,” Agriculture Undersecretary Asis G. Perez told BusinessWorld on the sidelines of the same event. “But we have to find ways to implement it and also make sure, because when you do it at the seasonal level, sometimes it might cause uncertainty and unpredictability.”

“As for the concept itself, we are receptive to considering the idea as proposed. As always, the DA is like that. We don’t shut down an idea.”

Mr. Perez said their policies must aim to “take out the unpredictability” in food supply, which affects prices.

“That’s to ensure consistency, predictability, which is, I think, a critical element for a robust food supply system. Not only for rice but for everything, any other product,” he added.

The DA in January said it was expecting the palay or unmilled rice harvest to exceed 20 million metric tons (MT) this year. In 2024, palay output declined to a four-year low of 19.09 million MT, down by 4.84% from the previous year.

Rice imports will likely decline 1.9% to 5.2 million MT this year, according to the US Department of Agriculture. In 2024, rice imports hit a record 4.7 million MT.

Meralco power rates down in May

PHILSTAR FILE PHOTO

RESIDENTIAL CUSTOMERS of Manila Electric Co. (Meralco) could get some relief this month as the power distributor announced a decline in electricity rates for May, driven by lower generation and transmission charges.

Following three months of hikes, the overall rate for May is set to decrease by P0.7499 per kilowatt-hour (kWh) to P12.2628 per kWh from P13.0127 per kWh in April, Meralco said in a statement on Tuesday.

This will translate to a downward adjustment of around P150 in the total electricity bill of customers consuming 200 kWh. Those consuming 300 kWh, 400 kWh, and 500 kWh will see reductions of P225, P300, and P375, respectively. 

“The reduction in charges is due to lower generation and transmission costs, which we can see have decreased quite significantly,” Joe R. Zaldarriaga, Meralco vice-president and head of corporate communications, said partly in Filipino.

Generation charges, which cover the cost of power purchased from suppliers, decreased by P0.3144 per kWh to P7.4651 per kWh this month, primarily due to lower charges from the Wholesale Electricity Spot Market (WESM) and independent power producers (IPPs).

WESM charges went down by P1.1424 per kWh amid the improved supply situation in the Luzon grid, Meralco said.

“While the grid’s peak demand rose by 1,372 MW (megawatts), this was more than offset by the 1,475-MW reduction in average capacity on outage.”

Charges from IPPs also declined by P0.9555 per kWh amid higher average IPP dispatch and the peso’s appreciation, which affected around 97% of dollar-denominated costs. The peso mostly traded at the P56 level last month before closing at P55.833 on April 30, rising from its P57.21 finish on March 31, as weak US economic data fueled recession fears, which pulled down the dollar.

These reductions helped offset the P0.1884 per kWh hike in charges from power supply agreements (PSA) due to lower dispatch.

WESM, IPPs, and PSAs accounted for 26%, 33%, and 41%, respectively, of Meralco’s total energy requirement for the period.

The P0.2970 per kWh decrease in the transmission charge — driven by the decline in ancillary services charges from the reserve market and contracts — also contributed to the reduction in May electricity rates.

Other charges, including taxes, dropped by a net P0.1385 per kWh.

Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively. Taxes, universal charges, and Feed-in Tariff allowance are remitted to the government.

Meralco’s distribution charge has remained unchanged at P0.0360 per kWh since August 2022.

“Customers also continue to benefit from the ongoing implementation of the distribution-related true-up adjustment, equivalent to a reduction of P0.2024 per kWh for residential customers,” it said.

STABLE POWER DURING ELECTIONS
Meanwhile, Meralco said that electricity service across its franchise area remained stable during the midterm elections held on Monday.

“This was made possible by our early preparations that started November last year, conducting inspection and maintenance of power facilities, ensuring stable power to critical election sites,” said Froilan J. Savet, Meralco first vice-president and head of networks of Meralco.

Mr. Savet said the company deployed more than 3,000 personnel in strategic locations, including the Commission on Elections’ Command Center in Parañaque City, which served as the central hub for election monitoring, to ensure rapid response.

“Meralco will remain on full alert and on standby 24/7 to respond to possible concerns until the winners of the midterm elections have been proclaimed,” Mr. Zaldarriaga added. 

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

US-China trade truce could provide relief to Philippine markets

BW FILE PHOTO

By Aaron Michael C. Sy, Reporter

PHILIPPINE financial markets could get some short-term reprieve from the volatility it saw in recent months after the United States and China on Monday agreed to slash tariffs temporarily.

“The trade truce should be good for equities, including the PSEi (Philippine Stock Exchange index). The US dollar will be strong given that the probability of the US falling into stagflation has decreased significantly,” Bank of the Philippine Islands Treasurer and Global Markets Head Dino R. Gasmen said in a Viber message.

“The trade truce will likely be a positive driver for the stock market as it somewhat reduces the short-term likelihood of a global economic slowdown,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

He said their year-end target for the PSEi is now at 7,456, down from 7,752 previously. “This downgrade reflects our tempered gross domestic product growth outlook on the back of policy uncertainties from abroad, which directly and indirectly impact the profitability of local listed companies.”

Mr. Garcia added that the peso will likely maintain its strength in the short term, even as the dollar initially strengthened following the trade deal news.

A trader likewise said that the peso could remain within the P55 to P56 range in the short term as players continue to monitor the global trade picture.

“It’s still a wait-and-see scenario for the market as the trade deal is temporary. We still have to monitor headlines on developments between the two countries with regards to the tariffs. So, any news that may negatively affect the trade talks may result in renewed selling pressure against the dollar,” the trader said.

On Tuesday, the PSEi surged by 1.68% or 108.62 points to close at 6,566.82. This was the bellwether’s best finish in over four months or since it ended at 6,625.17 on Jan. 6, which was before US President Donald J. Trump returned to the White House for his second term.

Meanwhile, the peso closed at P55.795 per dollar, weakening by 28.5 centavos from its P55.51 finish on Friday, Bankers Association of the Philippines data showed. Year to date, it is still up by P2.05 from its end-2024 close of P57.845.

A rally in global stocks and the dollar lost some momentum on Tuesday, as initial euphoria over a trade truce between the United States and China gave way to the persistent concern among investors over the impact of the standoff on the global economy, Reuters reported.

The world’s two largest economies have initiated a 90-day pause in their trade war, bringing down reciprocal tariffs and removing other measures while they negotiate a more permanent arrangement.

The agreement has reignited investor appetite for stocks, cryptocurrencies and commodities, unleashing a 3.3% rally on Wall Street the previous day.

By Tuesday, some of that enthusiasm had ebbed. Futures on the S&P 500 and Nasdaq fell 0.4%, underscoring the caution towards US assets.

The dollar surged against a basket of currencies on Monday by the most in a day since April 22. By Tuesday, some of that had faded, leaving most other major currencies stronger across the board.

Following the Geneva talks, the US said it will cut tariffs imposed on Chinese imports to 30% from 145% while China said it would cut duties on US imports to 10% from 125%.

Ratings agency Fitch estimates the US effective tariff rate is now 13.1%, a notable decline from 22.8% prior to the agreement but still at levels unseen since 1941 and above the 2.3% that prevailed at the end of 2024.

The US government went one step further on Tuesday, announcing it will cut the “de minimis” tariff on Chinese shipments of items valued at up to $800.

Mr. Trump’s unpredictable approach to the economy, trade and international diplomacy has fanned concern about the outlook for US growth. Together with a lack of progress in hashing out deals with trade partners, these factors have driven investors out of US assets for weeks, to the benefit of safe havens like gold, the Japanese yen and Swiss franc.

The shift in US-China trade relations has also led traders to reduce their expectations for US Federal Reserve rate cuts, as they believe policymakers may have more leeway if the risks to inflation abate.

Traders are now pricing in 58 basis points (bps) of cuts this year, down from over 100 bps during the height of tariff-induced anxiety in mid-April.

This outlook could affect Philippine bond yields, the analysts said.

“Government securities yields should be slightly higher as the probability of rate cuts by the Monetary Board will be affected by the reduction in expected rate cuts by the US Federal Reserve,” Mr. Gasmen said.

Last week, Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. told Bloomberg that the central bank is open to cutting benchmark interest rates by a further 75 bps this year amid cooling inflation.

The Monetary Board last month resumed its easing cycle after an unexpected pause in February, cutting borrowing costs by 25 bps to bring the policy rate to 5.5%. Its next meeting is on June 19.

A second trader said in a phone interview that local debt yields could move sideways in the short term as trade talks continue to develop and as interest in US bonds wanes.

“If trade talks are good, foreign investors will buy bonds in the Philippines. Demand and rates could move sideways because trade talks are still developing,” the second trader said. — with Reuters

Business groups call on new lawmakers to pass key measures

PCOO

THE PHILIPPINE Chamber of Commerce and Industry (PCCI) has called on the new Congress to pass key economic measures to promote competitiveness and business growth in the country.

“As the country anticipates the final and official results of the midterm elections, the PCCI, the largest business organization in the country, hopes for the new Congress to pass economic measures that support and promote competitiveness and business growth,” the group said in a statement on Tuesday.

Among these measures is the Magna Carta for micro, small, and medium enterprises (MSMEs), which the PCCI said will extend banks’ mandatory loan allocation for small businesses. It will also remove the Bangko Sentral ng Pilipinas’ regulatory cover on SB Corp., which will allow the extension of MSME loans within an out-of-the-box framework.

The group also called for the passage of the International Maritime Trade Competitiveness Act, which was recently filed as House Bill No. 10507.

The proposed law aims to strengthen the oversight functions of government agencies over the imposition of shipping charges by international shipping lines.

This will “ensure that the shipping charges are based on international best practices, reasonable, and subject to taxes, as these are charged at a local level,” the PCCI said.

The bill has been pending with the House Committee on Transportation since Aug. 29.

The PCCI is also pushing for amendments to the charters of the Philippine Ports Authority (PPA) and the Civil Aviation Authority of the Philippines (CAAP).

“The developmental functions [should] be given to a private entity that will be responsible for the development and commercial functions of ports, allowing PPA and CAAP to focus on their core function of regulatory oversight,” the PCCI said.

Another measure that the group is pushing for is the National Quality Infrastructure Act, which is seen to help in facilitating access of Filipino products to global markets by ensuring that they meet international quality benchmarks.

The group also asked for the rationalization of the mining fiscal regime, which it said will allow for predictability in tax policies, enabling long-term decisions in the sector where exploration to production takes five to 10 years.

“These are some of our wishes that, hopefully, this new Congress will consider enacting. These reform measures are essential if we want to build a better and progressive economy,” PCCI President Enunina V. Mangio said.

She added that it is important to elect legislators who can “champion policies that foster economic stability and growth and promote a conducive environment for business.”

She said she hopes the Filipino people will elect leaders “with good economic and financial literacy and understand global trade and investment.”

Meanwhile, Makati Business Club (MBC) Executive Director Rafael A.S.G. Ongpin said the business group is happy as the midterm elections “seem to have been a very free and fair election by Philippine standards.”

“The smoothness of this political exercise shows that we are a stable country politically, and that has implications for our economy as it makes us more investor-friendly,” Mr. Ongpin told reporters on Tuesday.

“There really were many different factions competing, and they all had varying degrees of success, so that for us is good… So, we are happy that it went well with no big glitches,” he added.

For MBC, he said they hope the incoming Congress will prioritize the Freedom of Information (FOI) bill.

“The MBC has been trying to press on this for decades. Actually, the first FOI bill was filed in Congress in the 80s. It is a long-standing effort, and the Senate finally was able to consolidate all their versions and have just one bill,” he said.

“There are various other measures such as taxation and so on that we are sponsoring in line with our initiatives, and we feel that we have a much better chance of success with this Congress,” he added.

Mr. Ongpin said the incoming Congress seems to be a “more functional assembly of people and are not going to be squabbling amongst each other.”

He added that he is happy with the results of the elections, noting that “it shows that there are people who vote on issues rather than personalities.” — Justine Irish D. Tabile

Horsepower vs torque: What these mean for cars

Performance on the road is crucial in choosing a vehicle, whether for personal or business use. Vehicles rely on speed, power, precision, and control to perform at their best; and these are made possible by mechanical forces built in each vehicle, among them horsepower and torque — two aspects that speak of what a car’s engine carries within. Thus, these are considerations worth including when choosing a car, on top of features that best suit a driver’s preferences, among others.

Horsepower

Simply put, a horsepower is a unit of measurement used to indicate engine power in cars. It influences speed, acceleration, and overall power of a vehicle.

“Horsepower is a major factor in how fast your car goes when you step on the gas pedal,” an online article from automotive authority Kelley Blue Book (KKB) noted.

Generally, the larger the engine of a vehicle, the greater the horsepower; and the smaller the engine, the lesser the horsepower.

Each type of vehicle has a distinct horsepower. Typically, a standard car carries at least 150 to 175 horsepower; while smaller crossovers and sport utility vehicles (SUVs) measure between 200 to 250 horsepower; and electric vehicles at 250 horsepower. Among larger sized vehicles, larger SUVs consist of 250 to 300 horsepower; while trucks have 200 to 300 horsepower.

Vehicles with higher horsepower engines offer advantages, specifically in speed and acceleration. These engines can maintain higher speeds for longer periods and are considered super-efficient for driving on highways. In trucks, higher horsepower contributes to better towing abilities, as well as highway driving.

At present, horsepower is a key consideration when designing high-performance vehicles. Examples include supercars, or muscle cars, and sports cars, many of which produce at least 500 horsepower in their engines.

However, not every driver needs a vehicle with high horsepower. Some might prefer economic cars, which are smaller, and thus have lower horsepower and consume less fuel. These vehicles are known for their fuel efficiency while keeping top-speed performance.

Torque

Another important engine specification is torque. While horsepower refers to a vehicle’s power, torque refers to its strength. A torque is defined as a measurement of how much force the engine can generate. It is a force that flows from engine to transmission and translates into speed and acceleration. This driving force is what allows cars to either speed up, maintain its pace, or slow down. Additionally, it plays a significant role in how fast vehicles can start or move.

In vehicles, torques are usually measured in Newton-meters (Nm) in the International System of Units, or pound-feet (lb-ft) or pound-inches (lb-in) in the US system. The function of torque is to accelerate the speed of the vehicle. The pistons, which move in up and down motion, produce force and then transfer it to the vehicle’s wheels through transmission and drivetrain.

“Torque is more important than horsepower when you first accelerate. Horsepower is more important than torque when you want to maintain peak performance,” KKB said. “Engineers tune for both, balancing horsepower and torque curves for the desired action.”

Most engines generate at least 100 to 400 lb-ft of torque, and having more torque in an engine means better capabilities for vehicles dealing with heavy tasks. For example, torque is especially important in larger vehicles (i.e., trucks, buses, SUVs, etc.), which are used for carrying heavy loads, pulling trailers, and moving cargos, among others. As a result, these vehicles prioritize higher torques than horsepower, with many of them equipped with at least 400 lb-ft of torque or more in their engines.

Diesel car engines, notable for impressive torque and more power, are usually found in trucks that are equipped with long strokes, allowing pistons with better leverage during rotation, leading to increased force in the engine. Aside from higher torques, diesel car engines are known for having better fuel efficiency and durability.

Electric vehicles (EVs), meanwhile, include instant torque in their engines. In EVs, a torque is produced by an electric motor, which operates through electromagnetism. Unlike traditional engines, torque in EVs is delivered instantaneously. With instant torque, EVs have faster acceleration, increased energy efficiency, simplified mechanical design, and improved driving experience. Furthermore, such EVs can deliver maximum torque that allows seamless acceleration with no lag, with a response time of less than 50 milliseconds. High-performance driving vehicles with instant torques are a better option for a smoother and more efficient driving experience.

Factoring in the two

When looked at closely, a horsepower and torque are interconnected. This relationship is similar to a push-pull dynamic, where the torque does the pushing and horsepower does the pulling in an engine. In essence, a torque is what gets a vehicle moving while the horsepower is responsible for maintaining the top speed.

“You can’t have one without the other, but you can have one high and one low,” the KKB article pointed out.

With horsepower and torque reflecting the capacity of car engines, one should consider whether a car’s engine best suits their needs from a car. While higher torque and horsepower in a vehicle sounds promising, however, it is not always ideal for every vehicle. Those with smaller engines that operate in lower torque and horsepower are equally as efficient.

With each vehicle serving a different purpose, drivers must choose the right engine specifications for their vehicles. Vehicles with higher horsepower are better suited for highways, making it much easier to maintain speeds and overtake vehicles, just when necessary. These vehicles include city cars and motorcycles that are designed for short distance travel.

But with larger vehicles, the higher number of horsepower or torque is not equivalent to more towing capacity, acceleration, or speed. For example, cars with low torque are useful for mountainous areas; while trucks equipped with high torque are needed for towing purposes.

In the local market, advancement in automotive technology have led manufacturers to offer various car models with more horsepower and greater torque.

Recently, Toyota Motor Philippines (TMP) has launched the Toyota GR Supra, a new sports car with 387 horsepower, running at 6,500 revolutions per minute, and 500 Nm of torque.

Another high-performance model is the Toyota Tundra Hybrid engine, which boasts 437 horsepower and 583 lb-ft torque. The Toyota Land Cruiser, a diesel car engine equipped with 302 horsepower and 700 Nm torque, is perfect both on and off-road environments.

TMP has also been driving sustainability further in automobiles through its various hybrid electric vehicle (HEV) models, like the Toyota Prius, with 194 horsepower and 139 lb-ft torque, and the Toyota Prius Prime, with 220 horsepower and 139 lb-ft torque. — Angela Kiara S. Brillantes

The right balance of power for your vehicle’s intended purpose

frimufilms

In everyday life, power has become so ingrained in society that it has become a necessity and a public utility, making machines work and life a little easier. However, in vehicles, the term is still somewhat looked at as a luxury, with potential consumers leaning towards purchasing the more expensive, more “powerful” models as symbols of status and performance.

For car enthusiasts, “power” is often referred to using its unit names: horsepower (hp) for gas vehicles and kilowatts (kW) for electric cars. These units measure the rate at which the engine or motor can perform work — in other words, how quickly it can generate force to move the vehicle. The higher the number, the more capable the vehicle is of accelerating quickly, climbing steep roads, or carrying heavy loads.

But while enthusiasts and manufacturers usually highlight these figures to signal performance or prestige, it’s important to understand that power does not automatically equate to a better driving experience for everyone. Generally, too much power also translates to more fuel burned. With gas prices in today’s economy, it may be too costly to purchase a vehicle just because of its power.

What truly matters is how that power is delivered and matched to your lifestyle. Looking at Metro Manila’s traffic situation, every vehicle should serve a purpose that matches its power, whether that’s for daily city commutes, weekend getaways, or heavy-duty work. Instead of getting caught up in numbers and buying vehicles with the most horsepower, it’s more practical to evaluate how a car may perform in real-world situations.

Basic for traffic

Even with a car, navigating the streets of Manila can be tedious and time-consuming, especially during rush hour when traffic becomes even more congested. During these bumper-to-bumper moments, it is better to opt for a smaller, more fuel-efficient car than a vehicle that can’t fully utilize its power.

Vehicles such as subcompacts, hybrids, and small electric vehicles (EVs) are well-suited for these conditions. Subcompacts are easy to maneuver and fuel-efficient, while hybrid vehicles’ electric motors can power the car at low speeds and for short distances, making them ideal for traffic. Similarly, small electric vehicles are well-suited for city traffic due to their compact size, agile handling, and instant torque.

An automobile that encapsulates these qualities is Toyota Motor Philippines’ subcompact crossover, Yaris Cross, which comes in two versions: one with a three-cylinder engine producing 118 hp and 145 Newton meters (Nm) of torque, and another with the same engine paired with a hybrid system. Both options are designed to handle the daily demands of driving in Metro Manila; but the hybrid variant especially shines in heavy traffic, where its electric motor can take over and help reduce fuel consumption and emissions.

For higher requirements

More and more Filipinos are becoming enchanted by the prospects of road trips and traveling around the Philippines in their own cars. However, these scenarios often require a vehicle with slightly more power for expressways, more speed for overtaking, and more comfort to handle long drives.

Midsize sedans, sport utility vehicles (SUVs), or crossovers with moderate horsepower (or kilowatts in the EV segment) are the perfect travel companions to take you to wherever you want to go. Midsize sedans are known for their balance of power, efficiency, and practicality. SUVs are famous for their family-friendly space, good fuel economy, and versatile power capabilities. Likewise, crossovers offer just enough muscle to handle highway overtakes and uphill climbs while having enough cargo space for travelers.

Drivers looking for these qualities may need to look closely at the Honda HR-V V-Turbo variant, which boasts a 1.5-liter VTEC Turbo engine pushing out 174 hp and 240 Nm of torque. That is more than enough power for expressway overtakes and long-distance travel, all while maintaining fuel efficiency.

Heavy-duty vehicles

Hauling, towing, and navigating through rough terrains are difficult situations where the power of a vehicle truly matters. Filipinos seeking heavy-duty vehicles in case of the occasional provincial road trips, carrying of heavy cargo, or simply want the assurance of strength under the hood, the more power, the better.

In these cases, pickups or large SUVs with a high-torque engine are the obvious and practical choice. Pickup models that offer robust engines with high horsepower and torque are more than suitable for towing and hauling heavy loads for prolonged periods. Many of today’s SUVs do have some towing and hauling capabilities, considering the increasing demand for versatility in daily drivers.

Still one of the most popular pickup trucks in the country, the Ford Ranger is a prime example of a vehicle built to handle these demanding tasks. The model can come equipped with a 2.0-liter Bi-Turbo EcoBlue diesel, delivering 210 hp and 500 Nm of torque that is made for towing large trailers, navigating rough roads, or hauling heavy cargo. The Ford Ranger is also known as one of the pickup trucks that marked the transition from rugged, basic workhorses to more lifestyle-oriented vehicles, making the truck a good option for those seeking both utility and comfort as well.

Electric vehicles

Environmentalists and eco-conscious drivers are also becoming more mindful of the power they choose in their vehicles, considering both fuel efficiency and emissions. As they often choose to purchase electric or hybrid vehicles, they not only need to be mindful of the power of their vehicles but also of the battery to ensure that they get adequate range for their lifestyle needs. 

Unlike traditional internal combustion engines, electric motors can provide instant torque, which allows for a smooth, responsive driving experience even at low speeds. This is especially valuable in city driving, where stop-and-go traffic is the norm. However, like every other EV in the country, these vehicles are hampered by the lack of infrastructure to support them. 

Nevertheless, Toyota HEVs like the Camry, Corolla Altis, Corolla Cross, Rav4, Yaris Cross, Alphard, and Zenix are great picks for car enthusiasts searching for the power of conventional engines with the fuel savings and eco-friendliness of electric motors. 

Ultimately, the power of a vehicle, while amazing in its capabilities, must still align with one’s needs and lifestyle. In the end, the best power is the one that complements your daily life and a companion to the journey both on the road and in the world. — Jomarc Angelo M. Corpuz

Shaping car power through engine

aopsan on Freepik

Most car buyers often focus on the brand, style or even the newest technology features of the vehicle. These features certainly matter, but beneath the polished exterior and flashing infotainment screens lies the heart of every vehicle: the engine.

The engine defines how a car moves, how it responds under pressure, and how efficiently it uses fuel. Simply put, the engine determines how well a car performs. Engine refers to what car makers call displacement; the total volume all the engine’s cylinders can push through a mix of fuel and air. This is typically measured in cubic centimeters (cc) or liters. A 1,000 cc engine, for instance, is also called a 1.0-liter engine.

But size alone does not tell the whole story. How it is designed and tuned plays a big part in a car’s power output and overall performance.

Horsepower is one of the most common ways to describe engine strength. It measures how much work the engine can do over time. In practical terms, more horsepower means quicker acceleration and better top-end performance.

That might sound appealing, but there is a trade-off as more horsepower usually requires more fuel. High-performance engines burn more gasoline to maintain power, which often results in lower miles per gallon (MPG). This is why car buyers often weigh performance against fuel economy.

Considering engine design

Compact engines ranging from 1.0 to 1.2 liters are commonly found in city cars and economy models. These engines usually have three or four cylinders and are built for lightness and efficiency. Their smaller size means they consume less fuel and emit fewer pollutants. On paper, they may not appear powerful as it produce only around 60 to 120 horsepower, but modern design techniques such as turbocharging and direct fuel injection help these engines deliver more punch than expected.

Car makers equip these engines with fuel-saving technologies such as start-stop systems and hybrid assistance to meet stricter emission standards without sacrificing much performance. 

Meanwhile, engines between 1.4 and 1.6 liters sit in the middle of the power-efficiency scale. Found in hatchbacks, sedans, and smaller sport utility vehicles (SUVs), these engines typically offer 90 to 150 horsepower, depending on tuning and whether they are turbocharged.

Turbocharging forces extra air into the engine, allowing for stronger combustion. This means more power without increasing engine size. Direct injection improves fuel burn efficiency. When combined, these technologies give drivers the feel of a larger engine while maintaining better MPG.

These engines are often four-cylinder setups but can also come in three- or six-cylinder configurations. They aim to offer a balance between power for highway driving and efficiency for urban traffic. Their torque is typically focused in the mid-range, which allows for smoother acceleration in everyday use. The balanced weight of these engines also improves handling, especially when paired with modern transmissions such as continuously variable transmissions (CVTs) or dual-clutch automatics.

Engines in the 1.8- to 2.0-liter range are designed for higher performance without completely sacrificing fuel economy. These engines usually have four cylinders, although some sportier models may include more. They produce between 120 and over 200 horsepower, making them suitable for compact cars, sedans, and light SUVs.

These engines shine on longer drives. Their torque delivery is often strong in the low to mid-range, allowing for easy overtaking and quick starts from a full stop. They are also refined enough to support a comfortable driving experience at higher speeds.

These engines perform well on longer drives. Their torque delivery is strong in the low to mid-range, allowing for quick starts and easy overtaking. They are also refined enough to support a smooth driving experience at higher speeds.

If a driver needs more strength for towing or carrying heavier loads, a 2.2- to 3.0-liter engine is often the go-to option. These engines typically feature four, six, or even eight cylinders. Vehicles in this category include larger sedans, SUVs, and performance cars. Their power outputs range from 150 to more than 400 horsepower. These engines are known for strong torque delivery, especially in the mid-range RPMs, making them suitable for demanding tasks such as long-distance cruising, pulling trailers, or navigating hilly terrain.

Drivers can also expect quicker acceleration and better response at highway speeds. However, fuel efficiency tends to decrease, although newer engines attempt to offset this with features such as cylinder deactivation and mild hybrid support.

Once engine size exceeds the 3.0-liter mark, the dynamics change significantly. These engines, commonly found in luxury vehicles and high-performance sports cars, often feature six, eight, 10, or even 12 cylinders. Their horsepower typically starts around 250 and can exceed 1,000 in some top-tier models.

With engineering features such as turbocharging, supercharging, and direct fuel injection, these engines deliver high performance, including rapid acceleration and high top speeds. Their torque remains available across a wide RPM range, supporting fast overtakes and smooth highway driving. Fuel efficiency is rarely a priority; instead, these engines emphasize performance, speed, and driving excitement.

After all, the number of cylinders, use of turbochargers, fuel injection systems, and engine tuning affect how much power the car produces and how efficiently it operates. Nowadays, even smaller engines can outperform older and larger ones due to technological advancements; so it is important to consider and evaluate how the vehicle will be used. — Mhicole A. Moral

Ayala Corp. posts P12.6-B Q1 profit as power, telco segments weaken

GLOBE.COM.PH

LISTED conglomerate Ayala Corp. recorded a 4% decline in its first-quarter (Q1) net income to P12.6 billion from P13.07 billion in the same period last year, due to weaker contributions from its power and telecommunications (telco) units.

First-quarter core net income, which excludes one-off items, likewise fell by 4% to P11.3 billion, Ayala Corp. said in a regulatory filing on Tuesday.

“We are seeing strong starts from our banking, real estate, and fintech businesses. Our telco and energy businesses have some catching up to do. Our smaller, newer companies are turning the corner. We are constructive on the year,” Ayala Corp. President and Chief Executive Officer Cezar P. Consing said.

The power business, led by ACEN Corp., saw a 28% drop in first-quarter net income to P2 billion due to lower generation from Philippine wind turbines rendered offline by typhoons in the fourth quarter last year, softer local electricity spot market prices, and depreciation expenses from newly operationalized plants.

For its telecommunications segment, Globe Telecom, Inc. recorded a 22% decline in core net income to P4.5 billion, weighed down by lower gross service revenues, higher financing costs, and increased depreciation expenses.

The Ayala-led telecommunications company, however, saw its Q1 attributable net income rise by 2.65% to P6.98 billion, driven by contributions from its e-wallet platform GCash.

“We reaffirm our outlook for 2025. We remain on track to deliver low- to mid-single-digit growth in service revenues, driven by a very resilient portfolio,” Globe President and Chief Executive Officer Carl Raymond R. Cruz said during a media briefing.

For the first quarter, Globe’s consolidated revenue declined by 3.42% to P43.76 billion from P45.31 billion a year ago.

Costs and expenses for the period increased by 2.1% to P40.54 billion from P39.72 billion in the first quarter last year.

“While the first quarter had some headwinds, the signals that we are actually seeing points to a stronger set of quarters ahead,” Mr. Cruz said.

“The industry is shifting rapidly that is why we are actually revisiting our guidance so we can respond with agility and seize opportunities without missing a beat,” he said.

Meanwhile, the banking business, led by the Bank of the Philippine Islands (BPI), grew its net income by 9% to P16.6 billion. Total revenue increased by 13% to P44.7 billion, driven by higher net interest income and an improved net interest margin.

The real estate segment, led by Ayala Land, Inc. (ALI), recorded a 10% increase in net income to P6.9 billion. Revenue rose by 6% to P43.6 billion on higher property development bookings, as well as healthy leasing and hospitality operations.

Ayala Corp. said its healthcare unit, AC Health, narrowed net losses to P59 million on improved facility utilization and higher margins.

Logistics subsidiary AC Logistics Holdings Corp. also reduced its core net loss to P303 million, driven by cost savings and margin improvements following the closure of Entrego and the last-mile operations of AIR21.

AC Industrials narrowed its core net loss to P115 million, supported by the turnaround of listed chip manufacturer Integrated Micro-Electronics, Inc. (IMI), and the reduced stake in Merlin Solar, which offset the loss in ACMobility that widened to P168 million due to higher marketing and manpower expenses from the ramp-up of the BYD brand and its charging infrastructure network.

In a separate disclosure, ALI’s real estate investment trust AREIT, Inc. posted a 43% increase in first-quarter net income to P2.1 billion, driven by contributions from previously infused mall, office, and hotel assets, which began in July last year.

Revenue rose by 38% to P2.9 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 42% to P2.1 billion. The company’s properties registered a 99% overall occupancy rate at the end of the quarter.

AREIT’s assets under management (AUM) are expected to reach P138 billion following a P21-billion asset infusion under a property-for-share swap deal with ALI, involving eight commercial assets in Visayas and Mindanao. 

“We will see our AUM quintuple to P138 billion from our initial public offering, keeping us on track to reach our goal of reaching $3 billion within the coming years, scaling to levels comparable with major regional REITs,” AREIT President and Chief Executive Officer Mr. Jose Eduardo A. Quimpo II said.

Ayala Corp. shares rose by 3.40% or P20 to P608 apiece on Tuesday. — Revin Mikhael D. Ochave and Ashley Erika O. Jose

Shell Pilipinas sets up to P6-B budget through 2026

PHOTO FROM PILIPINAS SHELL

LISTED oil firm Shell Pilipinas Corp. (SPC) has allocated up to P6 billion in capital expenditures through 2026 to accelerate the expansion of its mobility network and further develop its import terminal.

“We will continue our disciplined approach in terms of capital spending in the next two years, 2025 to 2026. We will be investing a total capex between P2-3 billion pesos per year in the next two years and that will be equally split between our mobility business and our supply chain,” SPC Vice-President for Finance Reynaldo P. Abilo said during the company’s annual general meeting on Tuesday.

Mr. Abilo said the allocated capex will be used to “build, upgrade, and refresh” the company’s mobility stations “to continuously provide superior customer service and experience to our customers.”

Part of the budget will also fund SPC’s investment in the Tabangao import terminal in Batangas to sustain jetting operations, improve cost competitiveness, and unlock new revenue streams.

Mr. Abilo said the investments will be funded by internally generated cash flows and operations.

Michael P. Ramolete, SPC’s vice-president for mobility, said the company is targeting to put up 15 to 20 new sites after closing several locations last year that failed to attain expected returns.

“Part of our cost and capital reduction was to hydrate our mobility network to prevent further losses and generate cost savings. So, in 2024, we actually closed 53 sites… These sites failed to meet criteria of expected returns,” he said.

“We will continue year-on-year to review our portfolio each year to ensure that all sites are delivering the target earnings,” he added.

Meanwhile, asked how the partnership between Saudi Arabian oil giant Aramco and Unioil Petroleum Philippines, Inc. will affect SPC’s business, Mr. Ramolete said that “competition continues to be very challenging in our industry.”

“That will obviously give us more things to think about in terms of how to be more competitive with a company like Aramco coming in the country,” he said. “But we will stay the course in terms of trying to defend and grow our business, manage our prices properly where we can afford them, and be more competitive, build new sites.”

In a statement on Tuesday, SPC reported a net income of P740 million in the first quarter of 2025, down 47% from a year ago, amid a volatile market environment and external headwinds from US tariff policies.

The company said earnings from its mobility business grew, backed by business-to-business growth through new customer acquisitions and increased volumes with existing customers.

SPC’s non-fuel retail segments, such as “convenience retail and alliance,” improved compared to the previous year.

Commercial fuels sales volume rose by 3% year on year, driven by stable demand and new customer acquisitions in the construction, mining, and manufacturing sectors.

Lubricants volume increased by 7% due to the expansion of route-to-market strategies, which enabled service in more remote locations and improved coverage in existing areas, with promotions boosting premium penetration.

For 2025, SPC President and Chief Executive Officer Lorelie Quiambao-Osial said the company will focus on “cash, returns, and growth.”

“Where we have been successful and achieved a positive trajectory in 2024, we will build on that. And where we have fallen short, we are adjusting that and continuing to improve that,” she said. — Sheldeen Joy Talavera

PHINMA sets capex at P3.8 billion amid growth push

DEL ROSARIO-LED conglomerate PHINMA Corp. is allocating P3.8 billion for capital expenditure (capex) this year, lower than the P4.5 billion set in 2024, as it expects continued growth in its education and property businesses.

“The PHINMA Group has set a capex of P3.8 billion for 2025 to better support its business initiatives to uplift underserved families and communities,” PHINMA Chairman and Chief Executive Officer Ramon R. del Rosario, Jr. said in a statement on Tuesday.

“We are optimistic for sustained growth with the expected higher enrollment for education, the accelerated implementation and completion of PHINMA Property Holdings Corp.’s (PHINMA Properties) projects, the strategic launch of our community housing business unit, and the continued implementation of our growth initiatives,” he added.

PHINMA Chief Financial Officer EJ A. Qua Hiansen said in a Viber message that P3.1 billion will be allocated to PHINMA Education, while P460 million will be allotted to PHINMA Properties.

He added that the remaining capex will be allocated to PHINMA’s other business units and to fund potential business initiatives.

For the first quarter, PHINMA recorded a 27% increase in consolidated net income to P562.62 million, led by improved sales across its business units. Attributable net income for the period stood at P191.27 million.

January-to-March consolidated revenue rose by 21% to P6.6 billion from P5.45 billion in the same period last year.

“The first-quarter results demonstrate the effectiveness of PHINMA’s strategic direction and the benefits of a diversified portfolio, with revenues increasing by 21% and net income growing by 27%. Our strong balance sheet and commitment to operational excellence position us favorably to seize opportunities and provide innovative solutions,” Mr. Hiansen said.

PHINMA Education posted P907.35 million in net income and P2.1 billion in revenue. Second-semester enrollment for school year 2024-2025 grew by 5% to 137,498 students, while the retention rate reached 89%.

The conglomerate’s Construction Materials Group (CMG) recorded a net loss of P69.71 million due to higher operational costs and interest expenses to support sales volume growth and future expansion. Revenue reached P3.87 billion, driven by higher sales volumes and efforts to expand market share.

To boost margins, PHINMA CMG continues to optimize its facilities while negotiating better terms with suppliers.

PHINMA Properties reported a P100.61-million net loss and P411.96 million in revenue during the period. The company’s performance reflected new sales and carryover sales from last year. Unbooked revenues from these developments will be recognized as construction progresses.

The hospitality segment, led by Coral Way City Hotel Corp., PHINMA Hospitality, Inc., and PHINMA Microtel Hotels, Inc., posted combined revenues of P136.34 million and a combined net income of P5.23 million for the quarter.

The business sustained chain-wide occupancy and higher average room rates. Hotel and venue bookings were mainly from the leisure, corporate, and events segments.

PHINMA shares were last traded on May 9, closing unchanged at P18.90 apiece. — Revin Mikhael D. Ochave

Jollibee Q1 earnings fall 8.1% to P2.41 billion

JOLLIBEE FOODS Corp. (JFC) reported an 8.1% decline in first-quarter (Q1) net income to P2.41 billion, down from P2.62 billion last year, due to higher non-operational costs.

“On a quarter-on-quarter basis, both operating income and net income after tax (NIAT) increased by double digits. While NIAT was slightly lower year-over-year, this was primarily due to non-operational factors,” JFC Chief Financial and Risk Officer Richard Shin said in a statement to the stock exchange on Tuesday.

Systemwide sales (SWS) increased by 18.9% to P103.2 billion, driven by 5.5% same-store sales growth (SSSG) from higher volume and contributions from new stores. Operating income rose by 17.6% to P4.8 billion.

Jollibee Group Chief Executive Officer Ernesto Tanmantiong said that the SWS of the domestic and international businesses grew by 11.9% and 29.5%, respectively.

“The growth in SWS of the Philippine business was led by Mang Inasal (+15.3%), Jollibee (+13.3%), Chowking (+9.9%), and Red Ribbon (+8.5%). The Philippine business’ SWS growth was driven by robust same-store sales growth across all four brands, mainly coming from volume or transaction count (TC),” he said.

Mr. Tanmantiong also said that the higher SWS of the international business was supported by the acquisition of South Korean coffee brand Compose Coffee.

“Our coffee and tea segment — now comprising 45.4% of the international business’ SWS — recorded a 62.2% increase, with Compose Coffee accounting for 49% of this growth. The international business’ SWS for the quarter also includes Tim Ho Wan, which is now 100% owned by the Jollibee Group effective January 2025,” he said.

Consolidated revenue rose by 14.6% to P70.2 billion, led by the increase in advertising and promotions.

“The substantial increase in advertising and promotions drove a 14.6% rise in revenues. Our strong first-quarter revenues, combined with our disciplined and prudent approach, led to double-digit growth in operating income and a notable improvement in margins. These results highlight the effectiveness of our strategic initiatives and the resilience of our core business,” Mr. Shin said.

JFC said that the SSSG of the Philippine business increased by 8.5%, led by the Mang Inasal, Red Ribbon, Jollibee, and Chowking brands. The international business saw a 0.7% increase in SSSG.

SSSG of the company’s China business declined by 8.3%, but Yonghe King showed sequential improvement in monthly volume. Smashburger registered a negative 8% SSSG, mainly from TC decline.

Meanwhile, Mr. Shin said that JFC is sticking with its full-year growth targets for this year. He previously announced that JFC is aiming for 8% to 12% SWS growth, 4% to 6% SSSG, and 10% to 15% operating profit growth.

“We are confident in our strategy and execution, and, accordingly, we are reaffirming our full-year guidance,” he said.

“Looking ahead, the Jollibee Group expects continued strong operational performance, and we remain proactive in managing macroeconomic and financial headwinds,” he added.

As of end-March, JFC grew its store network by 44.3% to 9,935, of which 3,393 are in the Philippines and 6,542 are international stores.

Of the international stores, 560 are in China, 361 in North America, 393 in EMEA, 865 with Highlands Coffee mainly in Vietnam, 1,246 with The Coffee Bean and Tea Leaf, 340 with Milksha, 2,700 with Compose Coffee, and 77 with Tim Ho Wan.

JFC shares dropped by 0.85% or P2 to P233 apiece on Tuesday. — Revin Mikhael D. Ochave

ICTSI to invest over $84M in Poland terminal upgrade

ICTSI.COM

INTERNATIONAL CONTAINER Terminal Services, Inc. (ICTSI) has announced plans to invest over $84 million through its Baltic Container Terminal (BCT) in Gdynia, Poland, to enhance its terminal facilities.

In a statement released on Tuesday, ICTSI confirmed the completion of Phase 1 of a two-phase major upgrade at the Helsie Quay.

“The completion of Phase 1 of our development program lays the foundation for major benefits that will be realized by our clients,” said BCT Chief Executive Officer Wojciech Szymulewicz.

Phase 1, which involved an investment of $42 million, saw the construction of 400 meters of quay, along with additional works including the installation of a new third rail to accommodate wider-span cranes, new hydrotechnical structures, and the development of roads and utility networks.

The upgrade is part of the Port of Gdynia’s efforts to accommodate larger vessels. ICTSI further announced that Phase 2 of the project is set to begin in September, which will involve the commissioning of an additional 100 meters of quay line.

Phase 2 is expected to be completed by the second quarter of 2026, according to ICTSI. Upon completion, the project will deliver two to four new super post-panamax quay cranes, enhancing the quay’s berthing and operational capacities.

ICTSI said the new cranes are expected to increase BCT’s annual handling capacity to between 1.2 million and 1.6 million twenty-foot equivalent units (TEUs).

Since 2003, ICTSI has held a 20-year concession granted by the Port Authority of Gdynia to develop, operate, and manage the container terminal in Pomerania, Gdynia, Poland. The company also acquired BCT, which holds the lease for the terminal.

On Tuesday, ICTSI shares closed at P407 apiece, up by P22 or 5.71%. — Ashley Erika O. Jose