Economy

Philippines Declares National Energy Emergency as Middle East Crisis Threatens Fuel Supply

President Marcos signs executive order citing Strait of Hormuz closure, activates nationwide response framework to stabilize energy sector

MANILA — March 24, 2026 — President Ferdinand R. Marcos Jr. declared a state of national energy emergency on Tuesday, March 24, citing escalating tensions in the Middle East that threaten to disrupt fuel supplies to the Philippines, a nation heavily dependent on imported petroleum products .

Under Executive Order No. 110, signed on March 24, Marcos authorized the Department of Energy and other government agencies to implement coordinated measures to ensure stable and adequate energy supply while mitigating the impact on the economy . The declaration positions the Philippines as the first country to formally declare an energy emergency in response to the current Middle East conflict, according to Anadolu Ajansı .

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“As a net importer of petroleum products, the Philippines remains highly dependent on external sources of fuel supply and is therefore vulnerable to disruptions in global oil production and transportation, which may affect the availability and timely delivery of petroleum products necessary to sustain domestic energy requirements,” the executive order stated .

Middle East Conflict Disrupts Critical Shipping Lanes

The declaration comes amid a widening regional war that began on February 28, when the United States and Israel launched joint attacks on Iran, killing more than 1,340 people, including then-Supreme Leader Ayatollah Ali Khamenei . Iran has retaliated with drone and missile strikes targeting Israel and Gulf countries hosting US military assets, while taking effective control of the Strait of Hormuz—a critical global oil transportation route through which much of Asia’s energy supplies pass .

According to the Philippine News Agency, Marcos cited the escalating tensions in the Middle East as a key factor threatening global oil production and transportation, with disruptions in critical supply routes including the Strait of Hormuz constraining global fuel supply and triggering price volatility .

The Philippines procures approximately 26 percent of its energy supplies from the Middle East, with a bill totaling $16 billion in 2024, according to Anadolu Ajansı . The Philippine Chamber of Commerce and Industry has noted that the country sources 100 percent of its crude oil imports from the Middle East, leaving it highly vulnerable to supply disruptions .

Local Impacts Already Felt

Even before the formal declaration, the energy crisis had begun affecting communities across the archipelago. In the island town of Patnanungan in Quezon province, Mayor Claire Larita-Natividad announced on March 21 that the local power plant would operate for only 16 hours daily starting March 22, conserving remaining fuel supplies while awaiting new shipments from the mainland .

The temporary schedule, expected to last approximately five days, reflects the immediate strain on fuel distribution networks across the country’s more remote regions .

President Marcos also warned of potential aviation disruptions, stating earlier on March 24 that aircraft停飞 “确有可能” (is “indeed possible”) due to aviation fuel shortages stemming from the conflict .

Coordinated Government Response

The executive order establishes the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) framework, designed to ensure the availability of domestic energy supply, uninterrupted delivery of essential services, and protection of vulnerable sectors .

An UPLIFT Committee, chaired by the President, will oversee implementation of the framework. Committee members include the Executive Secretary and the secretaries of the Departments of Energy, Transportation, Social Welfare and Development, Agriculture, Finance, Budget and Management, and Economy, Planning and Development .

Key measures authorized under the emergency declaration include:

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  • Energy supply management: The Department of Energy is directed to implement fuel optimization plans, load adjustments, and stricter enforcement of conservation measures .
  • Anti-hoarding enforcement: Authorities are empowered to take action against hoarding, profiteering, and supply manipulation .
  • Fuel procurement: The Department of Energy may make advance payments of 15 percent to secure fuel contracts, expediting procurement processes .
  • Transport sector support: The Department of Transportation can direct public transportation fuel subsidies and reduce or suspend toll charges and aviation fees .
  • Consumer protection: Fast-tracked aid will be directed to individuals in “crisis situations” .

The Department of Energy may also recommend regulatory actions to the Energy Regulatory Commission affecting operations of the Wholesale Electricity Spot Market if price volatility threatens power supply reliability .

Temporary Reliance on Coal

Energy Secretary Sharon Garin told reporters on March 24 that with the cost of liquefied natural gas soaring due to the conflict, the country would “temporarily” lean more heavily on coal-fired power plants, which already account for approximately 60 percent of the nation’s electricity generation .

“We talked to the generation companies, the coal-powered plants, to check how much they can increase their generation,” Garin said, calling it a “temporary measure” that could start as early as April 1. “If we are successful in implementing this, at least we can decrease the electricity rate hikes because of the conflict in the Middle East” .

Indonesia, the Philippines’ top coal supplier, has assured the country it would place no limits on coal orders, Garin added .

Long-Term Energy Transition

Despite the emergency measures, EO 110 also seeks to accelerate the transition to renewable energy, promote the use of electric vehicles in public transport, and integrate clean energy solutions across key sectors such as agriculture and manufacturing .

The declaration, anchored on Republic Act 7638 (the Department of Energy Act) and constitutional provisions granting the President control over executive departments, will remain in effect for one year unless otherwise extended or lifted by the Chief Executive .

President Marcos in January announced a “significant” discovery of natural gas near the country’s rapidly depleting Malampaya offshore gas field, raising hopes that the discovery could extend the life of the field, which supplies approximately 40 percent of power to the main island of Luzon and was expected to run dry within a few years .

Regional Context

The Philippines joins nations across Asia grappling with the fallout from the Strait of Hormuz closure. However, its declaration marks the first formal national energy emergency response to the crisis . The conflict has also affected global markets, with Brent crude oil prices surging above $110 per barrel at the onset of hostilities, contributing to inflationary pressures across the region .

As the Middle East war enters its fourth week with no resolution in sight, the Philippine government’s emergency measures reflect both the immediate supply risks and the country’s structural vulnerability as a net importer of petroleum products with limited domestic energy resources.

SOURCES / INPUTS

Philippine News Agency: PBBM declares state of nat’l energy emergency amid global supply risks

PTV News: PBBM declares nat’l energy emergency, orders whole-of-gov’t response amid MidEast crisis
Anadolu Ajansı: Philippines becomes 1st country to declare energy emergency due to Mideast conflict Manila Standard: PBBM declares national energy emergency

For broader context, see our in-depth analysis on Understanding the Global Economy: GDP, Inflation, Trade & Monetary Policy.

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Akhtar Badana

Akhtar Badana can be reached at https://x.com/akhtarbadana

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