Philippines Fights Energy Emergency Amid Global Oil Price Volatility

The Philippines faced a significant energy crisis in February when a joint US-Israeli strike against Iran's supreme leader triggered waves of missiles and drones across the region, disrupting global energy markets.

Oil prices surged due to the closure of the Strait of Hormuz, which carries 20% of the world's oil and gas supplies. The Philippines, which sources most of its crude oil from the Middle East, experienced a significant increase in fuel prices, with gasoline prices rising above P120 per liter and diesel prices reaching up to P170 per liter.

The government declared a national energy emergency on March 24 through Executive Order 110, activating a whole-of-government approach to respond to the crisis. Energy Secretary Sharon Garin stated that the declaration allowed the Department of Energy (DOE) to set pump price adjustments and temporarily suspend excise taxes on liquefied petroleum gas (LPG) and kerosene.

The DOE also implemented measures to secure alternative fuel sources, with state-run Philippine National Oil Co. procuring over 178 million liters of diesel and 21,000 metric tons of LPG. As of July 3, the Philippines had average fuel stocks sufficient for 46.5 days.