Philippines Declares National Energy Emergency Despite No Current Oil Supply Crisis
In a move that has sparked public discussion, President Ferdinand "Bongbong" Marcos Jr. declared a state of national energy emergency on March 24, 2026. This declaration came shortly after Undersecretary Claire Castro of the Presidential Communications Office (PCO) stated that the Philippines is not currently experiencing an oil crisis.
Clarifying the Contradiction
At first glance, these statements appear contradictory. However, Castro clarified that while oil prices have risen, there is no shortage in supply. She emphasized that the Philippines has not yet faced a supply crisis, even with the ongoing Iran conflict and the closure of the Strait of Hormuz, which affects oil tanker routes from the Middle East.
President Marcos supported this by noting that the current oil supply is expected to last until June 30. Malacañang confirmed the arrival of 700,000 barrels of crude oil from Russia, imported by Petron, the only oil company with a refinery in the country.
Understanding the Emergency Declaration
The Department of Energy (DOE) defines a supply crisis as occurring when oil reserves drop to just 15 days. Currently, this threshold has not been met. The President's declaration through Executive Order No. 110 is a proactive measure to accelerate government procurement of oil, valid for one year.
This step is seen as a precautionary move due to uncertainties in the Iran conflict. If the war prolongs and Middle East oil supplies are completely halted, the government aims to be prepared with sufficient fuel reserves.
Legislative and Financial Measures
In addition, President Marcos signed Republic Act No. 12316, granting him the authority to suspend taxes on oil products. An official order regarding this is expected after Holy Week, around April 12 or 13, following recommendations from the Development Budget Coordination Committee (DBCC).
Simultaneously, the government continues distributing aid under the Assistance to Individuals in Crisis Situations (AICS) program:
- P5,000 in assistance to affected drivers of habal-habal, traditional and modern jeepneys, buses, and other transport sectors.
- An additional P5,000 fuel subsidy administered by the Department of Transportation.
These measures highlight the government's dual approach: addressing immediate economic impacts on citizens while securing long-term energy stability amidst global uncertainties.
