Why the Philippines declared a national energy emergency
New executive order aims to secure fuel supply, stabilise economy as global oil risks rise
Dubai: The Philippines has declared a state of national energy emergency, highlighting growing risks to global oil supply as the conflict between US, Israel, and Iran have heightened geopolitical tensions in the Middle East.
Philippine president Ferdinand Marcos Jr. has signed Executive Order (EO) 110 to prepare the country for potential disruptions in fuel production and transportation. As a net importer of petroleum products, the Philippines is highly exposed to global market shocks, particularly those affecting major shipping routes such as the Strait of Hormuz.
“The foregoing circumstances pose an imminent danger of a critically low energy supply and that urgent measures are necessary to ensure the stability and adequacy of the country’s energy supply,” read the EO.
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What is EO 110 and what does it do?
At the centre of EO 110 is a coordinated national response through the Unified Package for Livelihoods, Industry, Food, and Transport (Uplift).
A committee chaired by the president will oversee implementation, bringing together departments responsible for energy, transport, social welfare, agriculture, finance, economy, and budget. The aim is to ensure that fuel and essential goods continue to flow while maintaining the operation of public transport, healthcare services, and utilities.
Moreover, the Uplift committee will monitor developments closely and take steps to “safeguard economic stability.”
How will it affect daily life?
Apart from supply management, the government is also moving to adopt stricter energy conservation measures.
The Philippine Department of Energy (DOE) has been directed to implement fuel optimisation plans and enforce “prudent energy management” across sectors. The declaration has been eyed to accelerate the country’s long-term energy transition.
“The resource conservation and prioritisation mechanism, as determined by the DOE, shall consider the optimal dispatch of power plants, taking into consideration grid reliability, priorities in the use of cheaper technologies, and the conservation of fuel that will mitigate price impact and prolong supply.”
What powers does the government have?
EO 110 grants the government authority to intervene where necessary to secure energy supply. This includes fuel procurement, permits issuance, and action against hoarding and profiteering.
Additionally, state-linked energy firms have been authorised to step in to stabilise supply, like making advance payments for fuel purchases when required.
“All agencies shall ensure bureaucratic efficiency, the unhampered movement of essential goods, people, and services, and the application of necessary and proportionate compliance mechanisms, subject to existing laws, rules, and regulations.”
Local government units have also been instructed to align with national measures, while the private sector has been encouraged to support logistics and critical services.
How long will the emergency last?
According to EO 110, the measures will remain in effect for one year unless lifted or extended by the president.
The public has been urged to live out the spirit of “bayanihan” as the government moves to shield the economy from the wider impact of the situtaion in the Middle East on global energy markets.
