Wikipedia

2026 Philippine energy crisis

Since late February 2026, the war in Iran had caused the strait of Hormuz to get closed, disrupting 20% of the world's oil supply, triggering a worldwide economic crisis as well as a fuel crisis. Because the Philippines imports 98% of its oil from the Middle East, the closure threatens the country's energy supply, which is heavily dependent on oil.[1]

2026 Philippine energy crisis
Part of the 2026 Strait of Hormuz crisis, the economic impact of the 2026 Iran war, and the 2026 Iran war fuel crisis
A price board at a Shell filling station in Bago, Negros Occidental, showing significantly increased fuel prices, with diesel prices reaching over ₱140 (US$2.84) per liter, equivalent to $10.75 per gallon
DateMarch 24, 2026 (2026-03-24) – present
(2 months and 1 day)
Cause2026 Iran war

On March 24, 2026, President Bongbong Marcos declared a state of national energy emergency, stating that the Philippines had sufficient crude oil supply until June 30.[2] The Philippines was the first country to declare an energy emergency following the war in Iran.[1]

On March 23, 2026, Claire Castro, press officer of the Office of the President of the Philippines, stated that the Philippines was facing "price disruption" caused by the conflict in the Middle East and was not yet in crisis. The statement was supported by Energy Secretary Sharon Garin.[3] Later on, President Marcos ordered the creation of a crisis committee to ensure economic stability and the continued supply of resources to schools.[4] The following day, he declared a state of national energy emergency.[2]

According to the Philippine Institute for Development Studies, the energy crisis may put 1.3 million to 3.1 million Filipinos falling into poverty.[5]

Declaration

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President Bongbong Marcos signed Executive Order No. 110, putting the Philippines under a state of national energy emergency due to the 2026 Iran war. As the Philippines imports 98% of its oil from the Middle East, the country was severely affected by the crisis in the Strait of Hormuz.[1]

Impact

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Price board of a filling station in Pulilan on March 18, 2026, showing increased fuel prices due to the effects of the 2026 Iran war

The national oil supply of the Philippines continually diminishes, while inflation is at an all-time high.[6] As of March 20, 2026, the Department of Energy (DOE) stated that the Philippines had an average of 45 days' supply of oil, down from 55 to 57 days when the war started a month ago.[7] The energy crisis also drove sharp increases in other fuels, with liquefied natural gas prices tripling and coal rising by up to 30%.[8] By March 24, the price of diesel exceeded ₱130 (US$2.64) per liter, while gasoline surpassed ₱100 (US$2.03) per liter, as continued Middle East tensions drove a third week of significant increases. Data from the DOE showed substantial price hikes across fuel types, while oil firms implemented adjustments and officials attributed the increases to global market pressures despite a slight slowdown in per-barrel price growth.[9]

Gas stations

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As of March 27, 2026, 425 filling stations across the country have closed, out of the 14,485 stations nationwide that were being monitored by the Philippine National Police (PNP).[10] By April 10, the PNP reported that 387 out of 14,519 gas stations were temporarily closed due to non-delivery of petroleum products.[11]

On May 5, 2026, the PNP reported four gasoline theft incidents at filling stations nationwide since the crisis began.[12]

Overseas Filipinos

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Around 40,000 overseas Filipino workers were stranded in Manila as the country declared deployment ban to various Middle Eastern countries such as Bahrain, Israel, Kuwait, Lebanon, Oman, Qatar, and the United Arab Emirates.[13] Two Filipinos were killed as a result of the conflict.[14]

Transportation

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Cebu Pacific and Philippine Airlines, the largest airlines in the Philippines, suspended several domestic and international routes amid the global fuel price surge and also to conserve local oil reserves.[15][16]

Tourism and retail

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In Baguio, a popular mountain resort city in the northern Philippines, tourism arrivals dropped by as much as 40-50%. Meanwhile, hotel bookings declined by around 30%.[17] In Nueva Vizcaya, the 2026 Ammungan Festival, which is usually held for five days, was scaled down to just one day due to the crisis.[18]

Several shopping malls in the country reduced their operating hours in response to the energy crisis.[19]

Power outages

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On May 13, the National Grid Corporation of the Philippines (NGCP) placed the Luzon grid on high alert, as dozens of power plants became unavailable due to forced outages.[20] The NGCP implemented rotational brownouts throughout the country, leaving almost 2 million people without power[20] with each power outage lasting between two to three hours depending on grid conditions.[21] By May 15, both the Luzon and the Visayas grid were placed on red and yellow alerts, with the yellow alert signaling that energy supply is tight, while the red alert indicates that the power supply is insufficient to meet the demand.[21]

Response

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The Philippine government stated that it was exploring alternative oil suppliers and holding talks with non-traditional sources, such as China, India, and Russia,[22] to help maintain a stable fuel supply amid global market uncertainty and price volatility.[23]

On March 25, 2026, President Bongbong Marcos signed into law Republic Act (RA) 12316, authorizing him until December 31, 2028, to suspend or reduce excises on petroleum products for up to three months to address rising oil prices.[24] That day, the Department of Budget and Management also approved the release of ₱20 billion (US$406.09 million) from the Malampaya gas fund to the DOE to secure fuel supply and stabilize availability amid global disruptions. The funds were allocated to procure fuel and support emergency energy measures, with procurement initiated by the state-owned Philippine National Oil Company Exploration Corporation (PNOCEC) to help prevent shortages and maintain essential services.[25] On April 11, Energy Secretary Sharon Garin announced the arrival of about 329,000 barrels of diesel from Malaysia, part of a 900,000-barrel shipment procured by PNOCEC that was scheduled for delivery in three batches in April.[26]

On March 26, the Energy Regulatory Commission (ERC) suspended electricity sales on the Wholesale Electricity Spot Market due to fuel supply risks. The ERC said a modified pricing scheme would be introduced as electricity prices surged, with temporary measures prioritizing renewable energy and conserving fuel supplies while the market remained under government intervention.[27]

Petron Corporation ordered 700,000 barrels of oil from Russia, taking advantage of the United States' thirty-day waiver on countries purchasing sanctioned Russian petroleum products already at sea. The U.S. sanctions were in place due to the Russian invasion of Ukraine.[28][29][30] The Philippine government said that it was working to obtain similar waivers from other U.S.-sanctioned countries.[31]

The Department of Agriculture activated ₱1 billion (US$20.3 million) from its quick-response fund following the declaration of a national energy emergency, allocating ₱500 million (US$10.15 million) for fuel subsidies to fisherfolk and another ₱500 million for fertilizer procurement, with rollout expected in May after the Presidential Assistance for Farmers and Fisherfolk program.[22]

On April 1, 2026, amid the Strait of Hormuz crisis, the Department of Foreign Affairs requested Iran to designate the Philippines as a "non-hostile" country to ensure safe passage for Philippine-flagged vessels and oil shipments through the Strait of Hormuz.[32] On April 2, Iranian foreign minister Abbas Araghchi assured his Philippine counterpart, Secretary Tess Lazaro, that Philippine vessels, energy shipments, and Filipino seafarers would be allowed safe and unhindered passage through the strait.[33]

The Department of Education (DepEd) has allowed private schools to shift to flexible learning, including online classes, in response to the national energy emergency.[34] DepEd also implemented a four-day workweek for school-based non-teaching staff and related teaching personnel, while remote work arrangements are implemented every Friday.[35]

On April 13, 2026, President Marcos said the government removed excises on liquefied petroleum gas (LPG) and kerosene to help ease rising fuel costs for households. The measure, implemented under RA 12316, was expected to reduce prices by about ₱3.36 (US$0.07) per liter for LPG and ₱5.6 (US$0.11) per liter for kerosene.[36]

The Civil Aeronautics Board (CAB) said fuel surcharges for passenger and cargo flights would increase to Level 19 for April 16–30, 2026, from Level 8 earlier in the month due to rising fuel costs. The adjustment raised additional charges to ₱627 (US$12.73)–₱1,837 (US$37.3) for domestic passenger flights and ₱2,070.77 (US$42.05)–₱15,397.15 (US$312.63) for international passenger flights, depending on distance. For cargo services, surcharges rose to ₱3.22 (US$0.07)–₱9.43 (US$0.19) for domestic flights and ₱10.65 (US$0.22)–₱79.15 (US$1.61) for international flights.[37] The CAB reduced the fuel surcharge for May 16–31 from Level 18 to Level 15. Under the new level, domestic fuel surcharges ranged from ₱491 (US$9.97) to ₱1,436 (US$29.16), while international surcharges ranged from ₱1,621.42 (US$32.92) to ₱12,056 (US$244.79), as authorities continued a 15-day monitoring cycle.[38]

The PNP has been monitoring fuel stations, supply depots, and other critical energy infrastructure nationwide to deter illegal activities and ensure continued access to essential services.[10] On May 5, 2026, the PNP announced a three-strike policy against police commanders who fail to address gasoline theft incidents after four cases were recorded. Police officials said an initial incident should serve as a warning for commanders to strengthen security measures within their jurisdictions.[39]

Local responses

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Due to the energy crisis, a state of calamity was declared in the Bangsamoro region,[40] the provinces of Cagayan[41] and Sorsogon,[42] the cities of Baguio[43] and Zamboanga City,[44] and in the towns of Ajuy[45] and New Lucena in Iloilo,[46] Calanasan in Apayao,[47] and Paracelis in Mountain Province.[48] A state of local emergency was also declared in Bongao in Tawi-Tawi,[49] as well as in Cagayan de Oro.[50]

Reactions

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Transport groups protesting in Manila, demanding the removal of VAT and excises, and the repeal of the oil deregulation law

Transport strikes have occurred in various parts of the country over rising oil prices.[51] To maintain peace and order, the PNP has tightened security in key energy facilities.[52]

Groups and opposition lawmakers called for the repeal of Republic Act 8479 or the Oil Deregulation Law, with Senate President Tito Sotto filing a bill to restore government authority over fuel pricing. The law had deregulated the downstream sector to promote competition and investment, but also limited the government's ability to intervene in price spikes. Officials acknowledged that current law restricts the DOE from capping prices,[53] prompting Energy Secretary Sharon Garin to call for a review of the Oil Deregulation Law, arguing that the current free-market framework is insufficient in periods of volatility.[54] The Malacañang said any repeal would depend on Congress.[53]

Following the announcement of a ceasefire agreement between Iran and the United States on April 8, Secretary Garin said fuel prices were unlikely to return to pre-war levels soon due to damage to oil infrastructure in the Middle East and the Philippines' heavy reliance on imported supply. She proposed establishing a national oil stockpile and dedicated funding to reduce vulnerability, citing high costs and limited storage capacity as key challenges. Garin said fuel supply remained adequate, with about 50 days of inventory and ongoing deliveries, but stated that price controls were not permitted under existing law.[55]

Former associate justice of the Supreme Court Antonio Carpio exhorted the government to carry out a "joint cooperation" in their proposed oil exploration with China instead of a "joint development" being proposed by the Chinese government. He stated that a joint cooperation aligns with both the Constitution and the South China Sea Arbitration regarding the country's exclusive economic zone. Joint development, according to Carpio, "means China owns the oil and gas, but out of friendship with other countries, it will allow other countries to participate in developing the oil or gas field".[56] However, Rear Admiral Roy Vincent Trinidad of the Armed Forces of the Philippines warned, "the Chinese Communist Party is not a reliable partner", citing the "difference in the way they speak and their actions on the ground".[57]

See also

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References

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  1. 1 2 3 Tewari, Suranjana; Guinto, Joel; Rawnsley, Jessica (March 25, 2026). "Marcos promises 'flow of oil' as Philippines declares energy emergency". BBC News. Archived from the original on March 24, 2026. Retrieved March 25, 2026.
  2. 1 2 Cabato, Luisa (March 27, 2026). "Marcos: PH has enough crude oil supply until June 30". Inquirer.net. Retrieved March 27, 2026.
  3. ↑ Cabato, Luisa (March 23, 2026). "Palace: PH facing 'price disruption,' not yet an oil crisis". Inquirer.net. Retrieved March 26, 2026.
  4. ↑ Esguerra, Darryl John (March 23, 2026). "Marcos orders creation of crisis committee amid Middle East conflict". Philippine News Agency. Retrieved March 26, 2026.
  5. ↑ De Leon, Nyah Genelle C. (April 17, 2026). "PIDS: Energy crisis may push up to 3.1M Filipinos into poverty". Inquirer.net. Retrieved May 6, 2026.
  6. ↑ Cupin, Bea (March 25, 2026). "What is UPLIFT and what does a 'national energy emergency' mean?". Rappler. Retrieved March 25, 2026.
  7. ↑ De Castro Jr., Isagani (March 24, 2026). "DOE's Garin says PH has average 45 days of fuel supply, down by 10 days since war began". Rappler. Retrieved March 27, 2026.
  8. ↑ Oliquino, Edjen (April 13, 2026). "Garin pushes shift to EV, review of Oil Deregulation Law". Daily Tribune. Retrieved April 13, 2026.
  9. ↑ Cordero, Ted (March 24, 2026). "Diesel to go up as high as P134.30/liter, gasoline at P112.40/liter this week". GMA News. Retrieved March 27, 2026.
  10. 1 2 Joviland, Rita (March 27, 2026). "Closed gas stations due to fuel price hikes now 425". GMA News. Retrieved March 27, 2026.
  11. ↑ Gregorio, Andrea (April 10, 2026). "PNP: 387 gas stations temporarily closed". MSN. Retrieved March 27, 2026.
  12. ↑ Peralta-Malonzo, Third Anne (May 5, 2026). "Another gas-and-run incident recorded in Quezon City". SunStar. Retrieved May 7, 2026.
  13. ↑ Khan, Anjum (April 7, 2026). "Philippines ramps up OFW reintegration as Middle East deployment crisis leaves thousands stranded". PeopleMatters. Retrieved April 10, 2026.
  14. ↑ Clores, Keith (April 7, 2026). "Another Filipino dies in Israel amid airstrikes". Inquirer.net. Retrieved April 10, 2026.
  15. ↑ Balaoing, Benise (March 23, 2026). "Cebu Pacific suspends routes, cancels flights amid global fuel price surge". ABS-CBN News. Retrieved March 25, 2026.
  16. ↑ Casucian, Jiselle Anne C. (March 26, 2026). "PAL cancels some April–May flights amid fuel crisis". GMA News. Retrieved March 27, 2026.
  17. ↑ Fokno, Mia Magdalena (April 9, 2026). "State of calamity declared in Baguio amid energy crisis". Rappler. Retrieved April 10, 2026.
  18. ↑ Comanda, Zaldy (April 2, 2026). "Ammungan Festival in Nueva Vizcaya reduced to 1 day due to fuel crisis". Manila Bulletin. Retrieved May 12, 2026.
  19. ↑ Gasgonia, Dennis (March 26, 2026). "Shopping malls cut operating hours due to energy state of emergency". ABS-CBN News. Retrieved March 27, 2026.
  20. 1 2 Cordero, Ted (May 14, 2026). "Meralco: 1.9M customers hit by brownouts during May 13 Luzon red alert". GMA News. Retrieved May 16, 2026.
  21. 1 2 Untalan, Sherylin (May 15, 2026). "EXPLAINER: Why rotational brownouts occur". GMA News. Retrieved May 16, 2026.
  22. 1 2 Villamiel, Vonn Andrei E. (March 26, 2026). "Emergency declaration unlocks P1B in DA contingency funds". BusinessWorld. Retrieved March 27, 2026.
  23. ↑ Gajitos, Tricia (March 12, 2026). "Philippines explores alternative oil suppliers amid global market uncertainty". Gulf News. Retrieved March 27, 2026.
  24. ↑ Mangaluz, Jean (March 25, 2026). "Marcos signs law for excise tax cuts, suspension, but won't use powers yet". Philstar.com. Retrieved April 13, 2026.
  25. ↑ Rosal, Derco (March 25, 2026). "DBM releases ₱20 billion to secure fuel supply amid oil supply crunch risk". Manila Bulletin. Retrieved March 27, 2026.
  26. ↑ Cordero, Ted (April 11, 2026). "Over 300K barrels of diesel arrive in PH amid Middle East crisis". GMA News. Retrieved April 14, 2026.
  27. ↑ Varadhan, Sudarshan (March 26, 2026). "Philippines suspends spot power sales as Iran war sends prices soaring". Reuters. Retrieved May 18, 2026.
  28. ↑ "Russian oil arrives as Philippines battles 'energy emergency'". Inquirer.net. March 26, 2026. Retrieved March 27, 2026.
  29. ↑ "US issues 30-day sanctions waiver for purchase of Russian oil at sea". Reuters. March 13, 2026. Retrieved March 27, 2026.
  30. ↑ Calonzo, Andreo; Venzon, Cliff (March 26, 2026). "Philippines Receives Russian Oil After US Sanctions Waiver". Bloomberg. Retrieved March 27, 2026.
  31. ↑ "PH says it's working with Washington to obtain oil from US-sanctioned countries". Rappler. March 25, 2026. Retrieved March 27, 2026.
  32. ↑ Cabalza, Dexter (April 1, 2026). "Iran asked to designate PH 'non‑hostile' for safe Hormuz passage – DFA". Inquirer.net. Retrieved April 14, 2026.
  33. ↑ Fernandez, Butch (April 3, 2026). "Lacson lauds DFA Secretary Lazaro's quiet diplomacy in securing safe passage through Hormuz". BusinessMirror. Retrieved April 14, 2026.
  34. ↑ Apacible, Lisa Marie (April 9, 2026). "DepEd allows private schools to shift to blended learning amid energy crisis". Daily Tribune. Retrieved April 12, 2026.
  35. ↑ Divina, Thea (April 10, 2026). "DepEd allows private schools to shift to blended learning amid energy crisis". DZRH. Retrieved April 12, 2026.
  36. ↑ Dantes, Charles (April 13, 2026). "PBBM suspends excise tax on LPG, kerosene". Manila Standard. Retrieved April 13, 2026.
  37. ↑ Salting, Ed Paolo (April 22, 2026). "Fuel surcharges for passenger, cargo flights up for April 16-30, says Civil Aeronuatics Board". The Manila Times. Retrieved April 22, 2026.
  38. ↑ Almazan, Faye (May 13, 2026). "Fuel surcharge at Level 15 from May 16 to 31". GMA Lifestyle. Retrieved May 18, 2026.
  39. ↑ Tupas, Emmanuel (May 6, 2026). "PNP imposes 3-strike policy on 'gas-and-run'". Philstar.com. Retrieved May 7, 2026.
  40. ↑ Fernandez, Edwin (May 21, 2026). "BARMM under state of calamity amid oil crisis, El Niño". Philippine Daily Inquirer. Retrieved May 22, 2026.
  41. ↑ Visaya, Villamor Jr. (April 21, 2026). "State of calamity declared in Cagayan due to drought, rising oil prices". Inquirer.net. Retrieved April 21, 2026.
  42. ↑ Serquiña, Mariel Celine (March 26, 2026). "Sorsogon placed under state of calamity amid rising oil prices". GMA News. Retrieved March 27, 2026.
  43. ↑ Cabreza, Vincent (April 10, 2026). "Baguio under calamity state due to fuel crisis". Inquirer.net. Retrieved April 11, 2026.
  44. ↑ Carreon, Frencie (April 8, 2026). "Zamboanga City declares 'state of calamity' due to oil crisis". MindaNews. Retrieved April 21, 2026.
  45. ↑ Marzan, Joey (March 31, 2026). "Town in Iloilo declares state of calamity over energy crisis". Inquirer.net. Retrieved April 1, 2026.
  46. ↑ Cordero, Ian Paul (April 3, 2026). "Fuel crisis: New Lucena in Iloilo declares state of calamity". Inquirer.net. Retrieved April 6, 2026.
  47. ↑ Visaya, Villamor Jr. (April 23, 2026). "Apayao town declares state of calamity due to fuel crisis". Philippine Daily Inquirer. Retrieved April 24, 2026.
  48. ↑ Visaya Jr., Villamor (April 29, 2026). "Mt. Province town under state of calamity due to drought, energy crisis". Inquirer.net. Retrieved April 30, 2026.
  49. ↑ "Bongao, Tawi-Tawi declares state of emergency over fuel shortage". GMA News. April 2, 2026. Retrieved April 4, 2026.
  50. ↑ Gallardo, Froilan (April 7, 2026). "CDO declares state of energy emergency". MindaNews. Retrieved April 8, 2026.
  51. ↑ Datu, Dennis (March 25, 2026). "Various groups to join 2-day nationwide transport strike over fuel price surge". ABS-CBN News. Retrieved March 25, 2026.
  52. ↑ Caliwan, Christopher Lloyd; Nepomuceno, Priam (March 25, 2026). "PNP tightens security in energy facilities". Philippine News Agency. Retrieved March 25, 2026.
  53. 1 2 Ferreras, Vince Angelo (March 19, 2026). "What is the Oil Deregulation Law?". GMA News. Retrieved April 13, 2026.
  54. ↑ Cruz, RG (April 13, 2026). "Energy chief backs review of Oil Deregulation Law, bats for intervention during crises". ABS-CBN News. Retrieved April 13, 2026.
  55. ↑ Flores, Alena Mae S.; Dantes, Charles; Cruz, Maricel; Superable, Ram (April 8, 2026). "Garin: Fuel prices not going back to prewar levels". Manila Standard. Retrieved April 9, 2026.
  56. ↑ Dava, Bianca (April 9, 2026). "Carpio pushes 'joint cooperation' in oil talks with China; lawmakers demand transparency". ABS-CBN News. Retrieved April 10, 2026.
  57. ↑ Delizo, Michael (March 31, 2026). "AFP warns China 'not a reliable partner' amid possible oil, gas talks". ABS-CBN News. Retrieved April 10, 2026.
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  • Executive Order No. 110, s. 2026 – Declaring a state of national energy emergency and authorizing the unified package for livelihoods, industry, food, and transport
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