Philippines Declares National Energy Emergency Amid Middle East Conflict

Philippines Declares National Energy Emergency Amid Middle East Conflict

MANILA, Philippines – Philippine President Ferdinand Marcos Jr. Declared a state of national energy emergency on Tuesday, March 24, 2026, in response to escalating risks to the country’s energy supply stemming from the ongoing conflict in the Middle East. The declaration, initially lasting for one year, aims to ensure the availability and orderly distribution of essential goods, including fuel, food, medicines, and agricultural products.

The decision follows concerns over potential disruptions to global energy markets, severe supply chain issues, and significant volatility in international oil prices, all exacerbated by the Middle East hostilities. According to an executive order released by the President, the situation poses a “threat to the country’s energy security.”

Government Measures to Stabilize Energy Supply

Under the state of emergency, President Marcos will lead a contingency committee tasked with coordinating a national response. Key measures include:

• Fuel Procurement: The Department of Energy is authorized to make upfront payments of up to 15 percent to secure fuel contracts, ensuring a timely and sufficient supply.
• Anti-Hoarding Measures: Authorities will take action against hoarding, profiteering, and manipulation of petroleum product supplies.
• Public Transport Support: The transportation department is directed to provide fuel subsidies for public transportation and consider reducing or suspending tolls and airline fees.
• Crisis Assistance: Accelerated aid will be provided to individuals facing crisis situations.

Philippines’ Energy Landscape and Reliance on Coal

The Philippines, which experiences some of the highest energy costs in the region, heavily relies on imported fuel to power its electricity generation. Approximately 60 percent of the nation’s electricity is generated from coal, with the remaining portion sourced from other fuels.

Energy Minister Sharon Garin indicated that, due to soaring liquefied natural gas (LNG) prices, the country may temporarily increase its dependence on coal-fired power plants. The government is actively engaging with power generation companies to explore increasing electricity production from existing coal facilities, with potential implementation as early as April 1, 2026.

Indonesia Assures Continued Coal Supply

Indonesia, a major coal supplier to the Philippines, has assured the country that it will not impose restrictions on coal orders. This commitment is crucial as the Philippines seeks to bolster its coal-fired power generation capacity in the short term.

New Natural Gas Discovery Offers Long-Term Hope

Despite the immediate challenges, the Philippines anticipates long-term energy security improvements with the recent discovery of “significant” natural gas reserves near the Malampaya offshore natural gas field. This discovery is expected to extend the lifespan of the field, which currently supplies around 40 percent of Luzon’s electricity, and is projected to deplete in the coming years.

Looking Ahead

The declaration of a national energy emergency underscores the Philippines’ vulnerability to geopolitical events and the importance of diversifying its energy sources. While the immediate focus is on securing fuel supplies and mitigating price increases, the long-term strategy involves developing domestic energy resources and transitioning to more sustainable energy options.