Philippine President Ferdinand Marcos Jr. declared a national energy emergency on Tuesday in response to the conflict in the Middle East and what he called the “imminent danger” it poses to the country’s energy supply.
Marcos said a committee has been formed to ensure the proper movement, supply, distribution and availability of fuel, food, medicine, agricultural products and other essential goods.
In an executive order shared with the media, Marcos said the conflict has caused uncertainty in global energy markets, severe supply chain disruptions, and significant volatility and upward pressure on international oil prices, “thereby posing a threat to the country’s energy security.”
“Declaring a national energy emergency will allow the government to…implement sensitive and coordinated measures under existing laws to address the risks posed by disruptions to global energy supplies and the domestic economy,” he said.
EMERGENCY IS VALID FOR ONE YEAR
The declaration, which will remain in force for one year, authorizes the government to purchase fuel and petroleum products to ensure timely and sufficient supply and, if necessary, to advance part of the contract amount.
Philippine Energy Secretary Sharon Garin told a news conference earlier on Tuesday that the country has 45 days of fuel reserves based on current consumption levels.
She said the government was working to procure 1 million barrels of oil from countries in and outside Southeast Asia to build its buffer stockpile, but there was likely to be uncertainty over the next round of orders.
The declaration should allow the government to act more quickly and bypass usual processes in response to the fallout from the Middle East conflict, which has pushed up oil prices and roiled global markets.
Marcos also ordered the Department of Finance, in coordination with the Central Bank of the Philippines, to closely monitor the impact of the Middle East conflict on the Philippine peso, money transfers, including risks of peso devaluation.
Before the executive order, senators examining the government’s preparedness criticized the administration for lacking a unified and coordinated response to the spike in oil prices, which the economic planning secretary warned could drive inflation to levels not seen in years and weaken economic growth.
Transport workers, commuters and consumer groups are planning a two-day strike starting Thursday to protest fuel price hikes and what they describe as inaction by the Marcos administration.
