Philippines Declares ‘National Energy Emergency’ and Boosts Coal Power as Iran War Grinds On

Philippine President Ferdinand Marcos Jr. declared a national energy emergency, citing threats to the country's energy security due to the ongoing conflict involving Iran. This declaration follows the disruption of global oil supplies caused by the war, particularly the closure of the Strait of Hormuz, a vital chokepoint for oil transportation.

The Philippines, which imports nearly 98% of its oil from the Gulf region, has faced a dramatic rise in fuel prices—diesel and gasoline costs have more than doubled since the conflict intensified in February. In response, Marcos signed an executive order that allows the government to implement measures to ensure energy stability and protect economic interests.

Under this order, the government now has the authority to monitor and regulate fuel distribution and to initiate direct purchases of petroleum products to secure supplies. Meanwhile, Energy Secretary Sharon Garin announced that the country would "temporarily" rely more on coal-fired power plants to meet electricity demands amid soaring costs of liquefied natural gas (LNG).

This increased focus on coal power is seen as a necessary but controversial measure, given that coal accounts for about 60% of the Philippines’ current electricity generation. The government plans to bolster coal production while maintaining communication with coal suppliers, primarily Indonesia, which has assured that coal exports will not be limited.

In light of the rising costs, various sectors, including transport workers, are organizing strikes to protest the increasing fuel prices and demand government intervention. Transport unions are calling for fare increases and wage adjustments, further complicating the energy situation in the archipelago.

With about 45 days of fuel supply remaining, the government is closely monitoring the situation and working to establish a diesel buffer to guard against future shortages. The emergency measures are set to last for one year unless extended or amended, highlighting the Philippines' vulnerable position in a rapidly changing global energy landscape.