The Philippines declared a national energy emergency as the conflict in the Middle East threatens fuel supplies and the country’s economy.
There is an “imminent danger of a critically low energy supply,” Philippine President Ferdinand Marcos Jr. said in an executive order late Tuesday. “Urgent measures are necessary” to ensure the stability of energy supplies, continuity of economic activity and the delivery of essential services, he said.
Marcos, at a televised briefing on Wednesday, said he issued the order as a “precautionary tool” to give his government more options to address the energy emergency. He also said he’s confident the nation has a steady flow of oil beyond the current stockpile of around 45 days, and that fertilizer supply is also sufficient until the next planting season.
The last time the Philippines declared a state of national emergency was during the Covid pandemic in 2020, when the country implemented one of the world’s strictest lockdowns.
While other nations have taken emergency measures to address the oil crunch in the wake of the war in Iran, including the release of strategic oil reserves and the creation of supplementary budgets, the Philippines appears to be among the first to formally declare a state of national emergency.
The peso slumped 4% this month to become among the worst performers in Asia. Stocks slid about 9% to also underperform peers.
The Southeast Asian nation, which imports nearly all of its oil from the Middle East, said it had 45 days worth of oil supplies as of March 20. Marcos told Bloomberg Television on Tuesday that it was a “distinct possibility” that planes could be grounded due to a shortage of jet fuel.
Philippine Airlines Inc. has secured enough fuel to meet its requirements through the end of June, the flag carrier’s President Richard Nuttall said in an interview with Bloomberg News on Wednesday. “Beyond that, we don’t have visibility,” he said.
Under a state of emergency, the president will form a committee that will ensure the availability of fuel, food, medicines, agricultural products and other essentials. It will also oversee energy management measures, as well as support for consumers and affected sectors.
The Department of Energy is directed to take measures to conserve energy and prevent hoarding. State energy firms are authorized to procure fuel and petroleum products and advance a payment exceeding 15% of the contract amount, the Presidential Communications Office said in a statement.
The Department of Transportation could subsidize fuel and commuter fares, extend rail operating hours, and suspend toll and aviation fees, the statement said. Other departments will also expedite the release of social welfare, monitor unreasonable price increases of basic goods, and the repatriation of migrant workers in the Middle East.
There was no mention of imposing a price freeze. The Philippines doesn’t offer broad fuel subsidies, unlike neighboring Indonesia, Malaysia and Thailand. Pump prices have mostly more than doubled since before the Feb. 28 US and Israeli attack on Iran.
The declaration of national energy emergency will be in force for one year unless extended or lifted by the president.
