With nearly all of the country’s crude oil imports tied to a region now gripped by conflict, the Philippine government is scrambling to secure alternative supply lines as fuel prices threaten to spike by as much as P24 per liter this week.
Financial group MUFG Research puts the Philippines’ Middle East oil dependency at 95%, a figure that underscores how exposed the country is to the ongoing disruption. President Ferdinand Marcos Jr., speaking at a Kapihan with the Media in New York on March 10, acknowledged the precariousness of the situation while trying to project measured confidence.
“Naghahanap tayo ng iba’t ibang lugar na makapagbigay ng supply sa atin. We are talking to many other countries who we normally do not buy oil from, but hopefully we will be able to come to an agreement with them [and] get further supply from them,” Marcos said.
The uncertainty, he noted, is the harder problem to manage. “The real problem here that everybody has to deal with, is hindi natin alam kung gaano katagal ito.”
Despite the strain, Marcos described the country’s current oil stockpile as being in “good shape,” even as his administration pursues contingency measures. Among these, he said he would certify as urgent the bill seeking to give the president emergency powers to suspend or reduce the excise tax on fuel. The measure, filed by House Speaker Bojie Dy and Majority Leader Sandro Marcos, the president’s son, would authorize those powers when average Dubai crude prices exceed $80 per barrel for at least three consecutive months.
That threshold has already been breached. Crude briefly hit $100 a barrel on Monday before retreating to $83.08, according to the Wall Street Journal.
Department of Energy Secretary Sharon Garin had earlier warned of a P17 to P24 per liter price increase, though some fuel companies agreed to ease the blow by staggering hikes in increments of P2.50 or P10.
On the government consumption side, Marcos ordered agencies to cut fuel and energy use by 10 to 20%. A temporary four-day work week for select government offices, announced on March 6, is also meant to reduce the state’s own fuel exposure while the broader supply picture remains unresolved.
