MANILA – Ferdinand Marcos, president of the Philippines, has declared a state of “national energy emergency,” citing the Middle East war and what his administration described as “an imminent danger of a critically low energy supply.” The directive will initially be in force for one year across the archipelago nation.
The move places the country’s energy system on crisis footing and empowers agencies to stabilize fuel and electricity costs. It follows an announcement that the Philippines plans to raise output from coal-fired power plants to counter surging liquefied natural gas (LNG) costs and disruptions to gas shipments linked to the conflict.
“A state of national energy emergency is hereby declared in light of the ongoing conflict in the Middle East, and the resulting imminent danger posed upon the availability and stability of the country’s energy supply,” the executive order said.
The declaration is contained in Executive Order No. 110, which creates a formal legal basis for emergency interventions in the energy market and directs agencies to prioritize “affordable, secure and reliable” power and fuel across the country.
What the emergency order allows
Under the order, which complements the mandate of the Department of Energy, the government can deploy a range of temporary measures aimed at shielding households and businesses from price shocks and supply disruptions.
- Expanded authority for the Department of Energy (DOE) to act against hoarding, price manipulation and other forms of profiteering in fuel markets.
- Permission for select government entities to make advance payments or enter longer-term contracts to secure fuel and power supply.
- Direction for the transportation department to target and recalibrate public transport fuel subsidies toward the most affected routes and operators.
- Authority to recommend the reduction or temporary suspension of toll charges and aviation fees to ease logistics and travel costs.
- Acceleration of assistance to individuals and families deemed in “crisis situations,” including those facing loss of income due to higher transport and energy costs.
Officials said the measures are intended to be time-bound and subject to review, but gave no specific timetable for when they might be scaled back.
Coal pivot aimed at damping power price spikes
Energy Secretary Sharon Garin said the Philippines would “temporarily” lean more heavily on coal while LNG prices remain elevated. She added that officials had consulted generation companies operating coal plants “to check how much they can increase their generation,” describing it as a “temporary measure” that could begin as early as 1 April.
Garin said the government would seek to “maximise” the use of local coal and keep open the option of additional imports from the Philippines’ top coal supplier, Indonesia. “There’s no restriction on our importation of coal from Indonesia as of today,” she said, while noting that higher volumes might not be necessary.
The shift underscores a short-term trade-off between energy security and climate goals: the Philippines has pledged to expand renewables and cut emissions, but officials argue that an abrupt loss of gas-fired capacity would risk blackouts and steeper power tariffs.
Fuel stocks, procurement plans, and U.S. waivers
Against that backdrop, the government is racing to shore up physical fuel supplies and diversify sourcing.
- As of 20 March, officials reported roughly 45 days of fuel supply remaining in the country’s stockpile, a level they described as “closely monitored” amid volatile global markets.
- The administration is seeking to procure an additional 1 million barrels of oil to build a strategic buffer and reduce exposure to further shipping disruptions.
- The Philippines is seeking waivers from the U.S. State Department to obtain oil from U.S.-sanctioned countries – possibly including Iran and Venezuela – to ensure supply, Ambassador to the United States Jose Manuel Romualdez said. He described Washington’s response as a “work in progress.”
Such waivers, if granted, would test how far Washington is prepared to flex its sanctions regime in support of a treaty ally under energy stress, while giving Manila more room to maneuver in a tightening global market.
Relief for transport workers and commuters
To blunt the immediate impact of higher fuel costs on mobility and livelihoods, authorities have begun disbursing 5,000 pesos (about $83) each to large numbers of motorcycle taxi drivers and other public transport workers nationwide. Free bus rides have also been offered to students and workers in selected cities.
Under the emergency order, the transportation department can further direct fuel subsidies to routes deemed essential for workers and low-income communities, and can recommend reductions or suspensions of toll charges and aviation fees to lower the cost of moving people and goods.
Local governments have been encouraged to align their own fare policies, traffic schemes and welfare programs with the national emergency framework, though implementation is expected to vary by city and province.
Contingency planning for overseas Filipinos
Beyond domestic measures, the Marcos administration is also preparing for knock-on risks to millions of Filipinos working in the Middle East, whose remittances are a critical source of household income and foreign exchange.
The Department of Migrant Workers has been instructed to prepare for potential rescue and evacuation of Filipinos in the region. According to the government, about 2.4 million Filipinos live and work there, including about 31,000 in Israel and 800 in Iran.
Officials said contingency plans cover emergency travel documents, coordination with host governments and employers, and temporary reception facilities should large numbers of workers need to be repatriated on short notice.
Energy system pressures and recent gas find
Officials noted that the Philippines has some of the region’s highest energy costs and is heavily dependent on imported fuel to keep power plants running. The country relies on coal for about 60% of its electricity generation, with most of the remainder coming from gas, oil and a still-modest share of renewables.
Marcos in January announced a “significant” natural gas discovery near the rapidly depleting Malampaya offshore gas field. The discovery has raised hopes of extending the life of a field that supplies about 40% of the power to Luzon, which includes Metro Manila, and had been expected to run dry within a few years.
Energy officials say that even if the new gas find proves commercially viable, it will not come online fast enough to offset the current shock, making short-term measures under Executive Order No. 110 a central tool of the government’s response.
The embassy request for sanctions waivers to secure oil supply “is a work in progress,” Romualdez said, adding that Manila would continue to calibrate its diplomacy and energy policy as the Middle East conflict and global fuel markets evolve.
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