“The declaration of a state of national energy emergency will enable the government… to implement responsive and coordinated measures under existing laws to address the risks posed by disruptions in the global energy supply and the domestic economy,” stated Philippine President Ferdinand Marcos Jr during the announcement of the national energy emergency on March 25, 2026. This declaration comes in response to the ongoing US-Israel war on Iran, which has significantly impacted global energy markets.
The emergency declaration will remain in force for one year, allowing the government to take necessary actions to stabilize the energy situation in the country. As part of the response plan, the government intends to procure 1 million barrels of oil to build its buffer stock. Currently, the Philippines has approximately 45 days of fuel supply remaining, raising concerns about potential shortages.
In addition to securing fuel supplies, the declaration empowers the government to combat hoarding and profiteering of petroleum products. This is crucial as the country heavily relies on imported fuel to maintain its power plants, with coal accounting for about 60% of its electricity generation. The government is also seeking waivers from the United States to obtain oil from countries under US sanctions, highlighting the complexities of the current geopolitical landscape.
To alleviate the burden on transport workers and commuters, the government is providing a 5,000 peso ($83) subsidy to motorcycle taxi drivers and public transport workers. Furthermore, free bus rides are being offered to students and workers in certain cities, aiming to mitigate the impact of rising fuel prices on daily commuters.
Sharon Garin, a representative involved in the energy sector, noted, “We talked to the generation companies, the coal-powered plants, to check how much they can increase their generation.” This indicates a proactive approach by the government to ensure that electricity costs remain manageable during this crisis.
As the situation evolves, the government is implementing coordinated measures to address energy supply disruptions effectively. The declaration allows for a more organized response to the challenges posed by the global energy crisis, which has far-reaching implications for the domestic economy.
What observers say
Organizations such as Piston have voiced concerns regarding the government’s measures. They argue that immediate suspension of the Excise Tax and Value-Added Tax on petroleum products would be a more effective way to protect transport workers and commuters from the escalating prices caused by the geopolitical crisis. “If the government genuinely intends to protect transport workers and commuters from this geopolitical crisis, it would immediately suspend the Excise Tax and Value-Added Tax on petroleum products to drastically lower prices overnight,” a representative from Piston stated.
As the Philippines navigates this national energy emergency, the focus remains on ensuring energy security and protecting the livelihoods of millions of Filipinos, particularly the 2.4 million who live and work in the Middle East and are directly affected by these global events. The government’s next steps will be closely monitored as the situation develops.
