Philippine President Declares Energy Emergency Amid Iran Conflict Impacts

Philippine President Declares National Energy Emergency Amid Fuel Crisis

President Ferdinand Marcos Jr has declared a national energy emergency in response to the ongoing fuel crisis, citing the “imminent danger” posed to the country’s energy supply due to the US-Israel war on Iran.

The declaration, which will remain in force for one year, authorizes the government to take measures to ensure the timely and sufficient supply of fuel. A committee has been formed to oversee the distribution and availability of essential goods, including fuel, food, medicine, and agricultural products.

According to Secretary of Energy Sharon Garin, the country currently has approximately 45 days’ worth of fuel supply based on current consumption levels. The government is working to procure 1 million barrels of oil from countries within and outside Southeast Asia to build its buffer stock.

However, transport unions and Philippine senators have criticized the government’s response to the crisis, arguing that it does not address the root cause of the fuel crisis. They claim that the declaration is a “superficial band-aid” that ignores the structural roots of the problem.

The unions are calling for immediate action, including the suspension of Excise Tax and Value-Added Tax on petroleum products to drastically lower prices. They also demand price controls and removal or suspension of oil taxes, which they say are at the core of the people’s demands.

As part of the government’s mitigation measures, students and workers in some cities are receiving free bus rides, and a 5,000 peso subsidy is being provided to motorcycle taxi drivers nationwide. The government has also announced plans to procure fuel and petroleum products to ensure timely and sufficient supply.

The Philippine Ambassador to the US has confirmed that Manila is working with Washington to secure exemptions for oil purchases from countries under US sanctions. However, details of these talks remain unclear.

Source: Al Jazeera