Iran war impact: Philippines declares energy emergency with only 40 days of fuel left

An employee in the Philippines uses black tape to adjust the prices on his sign at a gasoline station as oil prices continue to rise. (AP Photo)

The Philippines has declared a national energy emergency, warning of an “immediate threat” to fuel supplies as the escalating Middle East conflict threatens to disrupt global oil flows.President Ferdinand Marcos Jr. said in an executive order issued late Tuesday that immediate action was needed to protect energy stability, economic activity and essential services.According to a Bloomberg report, the move is the country’s first nationwide emergency declaration since the COVID-19 crisis in 2020.Heavily dependent on imports, the Philippines obtains almost all of its oil from the Middle East. Officials said the country had about 45 days’ supply as of March 20, raising concerns over possible shortages if the disruptions continued.Marcos warned that aviation could be one of the hardest-hit sectors, saying there was a “distinct possibility” that flights could be grounded due to jet fuel shortages.Flag carrier Philippine Airlines said it had reserved fuel only until June, with uncertainty remaining beyond that. Industry officials have not ruled out rationing if the crisis deepens.The emergency declaration empowers the government to take sweeping measures to manage the situation. A special committee will monitor the supply of fuel and other essential commodities, while officials have been directed to enforce conservation, prevent hoarding and expedite fuel procurement.Transport authorities can implement subsidies, expand rail operations and suspend some charges to reduce the burden on passengers. Welfare agencies have also been tasked with monitoring price increases and expediting aid, while preparations are underway for the possible withdrawal of foreign workers from the region.Unlike some Southeast Asian peers, the Philippines does not offer extensive fuel subsidies, leaving consumers more exposed to rising global prices.The disruption is linked to tensions around the Strait of Hormuz – a vital artery for global energy supplies – where instability has unsettled markets and driven fuel costs sharply higher.The state of emergency will remain in force for one year unless lifted earlier.

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