Philippines Declares National Energy Emergency Amid Middle East Conflict
President Ferdinand Marcos has declared a state of "national energy emergency" in the Philippines, citing the ongoing Middle East war as a critical threat to the nation's energy stability. This executive order, released on Tuesday evening, authorises immediate government action to address fuel shortages and price surges, with the emergency set to last for an initial period of one year.
Government Measures to Tackle Energy Crisis
The declaration empowers the Department of Energy to combat hoarding and profiteering, while facilitating advance payments for fuel contracts. In a bid to secure oil supplies, the Philippines is seeking waivers from the US State Department to import from sanctioned countries, potentially including Iran and Venezuela, as confirmed by Ambassador Jose Manuel Romualdez. As of 20 March, the country has approximately 45 days of fuel reserves and aims to procure an additional 1 million barrels to bolster its buffer.
Shift Towards Coal Power and Economic Impacts
Energy Secretary Sharon Garin announced plans to temporarily increase output from coal-fired power plants to mitigate rising electricity costs, exacerbated by disruptions in liquefied natural gas shipments. Coal currently accounts for about 60% of the Philippines' electricity generation, and the government is exploring options to maximise local coal use and potentially increase imports from Indonesia, which has assured no restrictions on orders.
To alleviate economic strain, the government is providing 5,000 pesos (approximately $83) each to numerous motorcycle taxi drivers and public transport workers nationwide, alongside free bus rides for students and workers in selected cities. The Department of Transportation has been granted authority to direct fuel subsidies and reduce toll charges and aviation fees.
Regional and Domestic Concerns
The Department of Migrant Workers is preparing for possible evacuations of Filipinos in the Middle East, where about 2.4 million reside, including significant numbers in Israel and Iran. This move underscores the broader regional implications of the conflict on Filipino communities abroad.
In January, President Marcos highlighted a "significant" natural gas discovery near the depleting Malampaya field, which supplies 40% of power to Luzon, offering hope for extending its operational life. However, with the archipelago heavily reliant on imported fuel and facing some of Southeast Asia's highest energy costs, the emergency measures aim to provide short-term relief while addressing long-term supply vulnerabilities.
