Why the Philippines just declared a national energy emergency
A simple guide to the President’s emergency order
SHAH ALAM – The Philippines has declared a state of national energy emergency as conflict in the Middle East threatens global oil supplies and drives fuel prices sharply higher.
With the country heavily dependent on imported petroleum, the government has moved to secure additional supplies, manage consumption and cushion the economic impact amid fears of shortages and rising inflation.
What triggered the emergency declaration
On March 24, Philippine President Ferdinand Marcos Jr announced emergency measures in response to the growing risk of fuel shortages linked to instability in global energy markets following conflict involving Iran.
In an executive order, Marcos warned of a looming supply crunch.
“There is an imminent danger of a critically low energy supply. Swift intervention is necessary to protect economic stability and ensure the continued delivery of essential services.
“Urgent measures are required to ensure the stability of energy supplies, the continuity of economic activity and the delivery of essential services,” he told a media conference.
The Philippines imports about 98 per cent of its oil, much of it originating from the Middle East, making the country particularly vulnerable to supply disruptions caused by geopolitical tensions.
The declaration will remain in force for one year unless lifted or extended earlier.
Fuel supply concerns and price pressures
Authorities said the country had around 45 days of oil supply as of March 20, raising concerns about potential shortages if disruptions persist.
Marcos acknowledged that the situation could affect aviation operations, telling Bloomberg that it is a “distinct possibility” that aircraft could be grounded if jet fuel becomes scarce.
Philippine Airlines president Richard Nuttall said the national carrier currently has sufficient fuel reserves in the short term.
“Beyond that, we do not have visibility. Fuel rationing may eventually be required,” he said.
Fuel prices have already surged, with petrol and diesel costs rising to more than double their pre-war levels since hostilities escalated on Feb 28.
Government powers under the emergency order
The emergency declaration allows the government to act more swiftly to stabilise supply chains and manage demand.
A special committee will be tasked with ensuring the availability and distribution of essential goods, including fuel, food, medicine and agricultural products.
The government has also been authorised to procure petroleum supplies directly and make advance payments exceeding 15 per cent of contract values to secure faster deliveries.
Energy Secretary Sharon Garin said authorities are working to procure one million barrels of oil to boost reserves.
The Department of Energy may also introduce conservation measures to prolong existing fuel supplies, including managing electricity usage and encouraging more efficient consumption.
Officials are also monitoring risks such as hoarding, price manipulation and supply disruptions.
Exploring alternative fuel sources
The government is exploring new suppliers beyond its traditional partners. Marcos said Manila is considering importing oil from countries outside its usual network, including Russia, as well as increasing supply from existing trading partners such as China.
Philippine Ambassador to the United States Jose Manuel Romualdez said discussions are ongoing with Washington regarding possible exemptions that would allow the Philippines to purchase oil from sanctioned countries.
“All options are being considered,” Romualdez said when asked about potential imports from countries such as Iran or Venezuela.
Possible economic and social impact
Rising fuel costs are expected to affect transportation, logistics and household spending, with economists warning of inflationary pressures and slower economic growth.
Marcos acknowledged the seriousness of the situation.
“We will have a flow of oil — not just one delivery, not two deliveries, but a continuous supply of oil-related products.
“Nothing is off the table. We are looking at everything we can do, every suggestion, every idea,” he said.
Government agencies may introduce support measures, including subsidies for transport operators, adjustments to commuter fares and social assistance for vulnerable groups.
Authorities may also extend rail operating hours, reduce certain transport fees and accelerate welfare payments.
In some cases, civil servants have already been placed on a four-day work week to conserve fuel.
Calls for stronger government response
Some labour organisations have criticised the administration’s handling of the crisis.
The Kilusang Mayo Uno (KMU) described the declaration as an acknowledgement of the severity of the fuel crisis and expressed concern over provisions that could limit protest activities.
Transport groups and consumer organisations have also announced plans for a two-day strike to protest rising fuel prices and demand policy reforms such as tax adjustments, fare increases and wage support.
Meanwhile, business leaders, including tycoon Manuel V Pangilinan, have voiced support for emergency powers, saying the government should be given flexibility to stabilise the economy.
Why the Strait of Hormuz matters
The conflict has disrupted supply routes, including the Strait of Hormuz, one of the world’s most critical oil transit chokepoints.
Nearly 90 per cent of oil and gas shipments passing through the waterway are destined for Asian markets, making regional economies especially vulnerable to supply shocks.
As a major energy importer, the Philippines faces heightened exposure to fluctuations in global oil markets.
Longer-term energy strategy
Beyond immediate measures, the government is also considering structural changes to reduce dependence on imported fuel.
Plans include accelerating the transition to renewable energy, expanding the use of electric vehicles in public transport and improving energy efficiency across industrial and commercial sectors.
Authorities are also encouraging behavioural changes among consumers to reduce energy consumption.
Key takeaway
The Philippines’ declaration of a national energy emergency highlights the far-reaching economic consequences of geopolitical conflicts for energy-dependent countries.
With limited domestic fuel resources, the government is attempting to balance short-term crisis management with longer-term reforms aimed at strengthening energy resilience.
Much will depend on how global oil markets evolve in the coming months and whether supply routes stabilise.
Download Sinar Daily application.Click Here!
