Fuel Prices Skyrocket Amid Global Oil Disruptions

The energy emergency in the Philippines has entered its fourth month since it was declared by President Ferdinand Marcos Jr. on March 24, amid rising fuel prices and supply disruptions caused by global events.

On February 28, a joint US-Israeli strike killed Iran's Supreme Leader Ayatollah Ali Khamenei, sparking a wave of missiles and drones across the region. Energy infrastructure was targeted, including commercial vessels and oil tankers, disrupting maritime traffic.

The closure of the Strait of Hormuz, which carries about 20% of the world's oil and gas supplies, further exacerbated the situation. Global energy markets were thrown into disarray as oil prices surged due to supply shortages.

In the Philippines, fuel prices skyrocketed with diesel reaching as high as P170 per liter in Metro Manila and highly urbanized cities. The Department of Energy (DOE) initially maintained that there was no energy crisis, but eventually declared a national energy emergency through Executive Order 110 on March 24.

The DOE mandated minimum rollbacks for oil firms and temporarily suspended excise taxes on liquefied petroleum gas (LPG) and kerosene to provide relief to Filipino families. However, the tax suspension was met with criticism from economic watchdog IBON Foundation, which argued that it was too little and tokenistic.