A worker in the Philippines uses black tape to adjust his sign prices at a gas station as oil prices continue to rise. (AP photo)
The Philippines has declared a national energy emergency, warning of “imminent danger” to fuel supplies as escalating conflict in the Middle East threatens to disrupt global oil flows.In an executive order issued late Tuesday, President Ferdinand Marcos Jr. said urgent steps were needed to protect energy stability, economic activity and basic services.The move marks the first nationwide emergency declaration since the Covid-19 crisis in 2020, according to a report by Bloomberg.The Philippines relies heavily on imports, importing almost all of its oil needs from the Middle East.
Officials said the country had about 45 days of supplies as of March 20, raising concerns about potential shortages if the unrest continues.Marcos warned that aviation could be among the worst-hit sectors, saying there was a “clear possibility” that flights could be grounded due to a shortage of jet fuel.Philippine Airlines said it only received fuel until June, with uncertainty beyond that point. Industry officials did not rule out legalization if the crisis worsens.
The emergency declaration enables the government to take comprehensive measures to manage the situation. A special committee will oversee the supply of fuel and other essentials, while authorities have been directed to enforce fuel conservation, prevent hoarding and speed up fuel procurement.Transport authorities may provide subsidies, expand railway operations and suspend some fees to ease the burden on passengers.
Social welfare agencies have also been tasked with monitoring rising prices and accelerating aid, while preparations are underway for the possible return of foreign workers from the region.Unlike some of its counterparts in Southeast Asia, the Philippines does not offer widespread fuel subsidies, making consumers more vulnerable to rising global prices.The turmoil is linked to tensions around the Strait of Hormuz – a vital artery for global energy supplies – where instability has rattled markets and pushed fuel costs sharply higher.The state of emergency will remain in effect for up to a year unless it is lifted earlier.
