2026 Philippine energy crisis
Fuel shortage in the Philippines due to the 2026 Iran war
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Since late February 2026, the Philippines has experienced an energy crisis as a result of the war in Iran. When the Strait of Hormuz was closed, it disrupted 20% of the world's oil supply. 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]
| 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 | |
| Date | March 24, 2026 – present |
|---|---|
| Cause | 2026 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]
Declaration
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
The national oil supply of the Philippines continually diminishes, while inflation is at an all-time high.[5] 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.[6] The energy crisis also drove sharp increases in other fuels, with liquefied natural gas prices tripling and coal rising by up to 30%.[7] 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.[8]
Gas stations
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).[9] By April 10, the PNP reported that 387 out of 14,519 gas stations were temporarily closed due to non-delivery of petroleum products.[10]
Overseas Filipinos
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.[11] Two Filipinos were killed as a result of the conflict.[12]
Transportation
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.[13][14]
Tourism and retail
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%.[15]
Several shopping malls in the country reduced their operating hours in response to energy crisis in the country.[16]
Response
The Philippine government stated that it was exploring alternative oil suppliers and holding talks with non-traditional sources, such as China, India, and Russia,[17] to help maintain a stable fuel supply amid global market uncertainty and price volatility.[18]
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.[19] 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.[20] 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.[21]
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.[22][23][24] The Philippine government said that it was working to obtain similar waivers from other U.S.-sanctioned countries.[25]
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.[17]
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.[9]
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.[26] 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.[27]
The Department of Education (DepEd) has allowed private schools to shift to flexible learning, including online classes, in response to the national energy emergency.[28] 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.[29]
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.[30]
The Civil Aeronautics Board 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.[31]
Local responses
Due to the energy crisis, a state of calamity was declared in the provinces of Cagayan[32] and Sorsogon,[33] the cities of Baguio[34] and Zamboanga City,[35] and in the towns of Ajuy[36] and New Lucena in Iloilo,[37] and Calanasan in Apayao.[38] A state of local emergency was also declared in Bongao in Tawi-Tawi,[39] as well as in Cagayan de Oro.[40]
On April 28, 2026, the town of Paracelis in the Mountain Province declared a state of calamity due to the “worsening drought, critical water shortage, and ongoing energy crisis.”[41]
Reactions
Transport strikes have occurred in various parts of the country over rising oil prices.[42] To maintain peace and order, the PNP has tightened security in key energy facilities.[43]
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,[44] 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.[45] The Malacañang said any repeal would depend on Congress.[44]
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.[46]
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".[47] 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".[48]