Energy supply concerns persist as fuel costs stay high in PH

The Philippines continues to deal with tight fuel supply and high prices, even as government measures and alternative energy plans are rolled out to manage the ongoing energy situation.

According to a report by “Kapuso Mo, Jessica Soho,” fuel costs remain elevated, with diesel ranging from P120 to P130 per liter and gasoline surpassing P112 per liter in recent weeks.

The increases are linked to global supply disruptions following tensions in the Middle East, including the ongoing conflict involving the U.S., Israel, and Iran, and restrictions affecting key oil shipping routes such as the Strait of Hormuz.

The pressure of rising fuel costs has also affected transport workers, with some stopping operations for days due to lack of income.

In one earlier incident in Quezon City, a driver collapsed while lining up for aid after reportedly going without food amid days of lost work caused by high fuel prices.

In response, the government placed the country under a State of National Energy Emergency on March 24, allowing the implementation of interventions such as possible price controls and expanded supply measures.

“It means more power, steadier power. And cheaper power,” President Ferdinand Marcos Jr. said, as the administration pushed efforts to stabilize energy supply.

In an interview with Jessica Soho, energy policy expert Atty. Noel Baga of the Center for Energy Research and Policy said the declaration confirms the seriousness of the situation but stressed that structural issues remain.

“Mabuti po ito kasi meron po talaga, seryoso po ‘yung ating energy crisis at oil crisis sa Pilipinas,” he said.

[“The energy and oil crisis we are facing in the Philippines is truly serious.”]

Atty. Baga pointed to long-standing factors behind high fuel costs, including dependence on imported oil and the deregulated structure of the local oil industry.

“Una po, kasi karamihan po nito, imported ‘yung ating mga langis. Pangalawa po, dahil nga po deregulated ang ating oil industry. At pangatlo, wala pong regulations ang gobyerno,” he said.

[“First of all, it's because most of our oil is imported. Second, it’s because our oil industry is deregulated. And third, the government has no regulations in place.”]

He also noted that the country’s oil buffer remains limited.

Based on Department of Energy (DOE) data as of March 20, the Philippines has 53 days of gasoline supply, 45 days of diesel, and 23 days of LPG, which is below the 90-day benchmark recommended internationally.

“Very thin reserves itong 45 days ng oil supply,” Atty. Baga said.

[“The 45-day oil supply is considered a very thin reserve margin.”]

The broader impact has already reached transportation, aviation, and government operations, with some airlines cutting flights, malls shortening hours, and select offices shifting to reduced workweeks as a cost-saving measure.

To ease pressure on consumers, the government continues to distribute fuel subsidies to affected drivers, ranging from P5,000 to P10,000.

However, some transport groups raised concerns, saying direct aid does not address lost income from reduced trips.

“Salamat sa 5k (P5,000) pero ‘di nila kailangan ng pera, ang kailangan nila trabaho,” one driver said.

[“We are grateful for the 5,000 pesos, but it isn't just money they need—it's employment,”]

Baga also raised implementation issues in aid distribution, citing accessibility and delays.

“‘Yung pagbibigay lang ng cash sa mga tao, napakarami hong bureaucratic problems niyan… napakahaba ng pila,” he said.

[“Simply giving out cash to the people involves so many bureaucratic problems... the queues are incredibly long.”]

On supply management, the Department of Energy Secretary Sharon Garin said “2 million barrels bibilhin ng gobyerno. This is on top of yung binibili ng oil companies natin. By today mga 1.044 million na ang nabili ng gobyerno na barrels of diesel, so, ngayong week may dumating na mga 144. So, we are reserving that stock in case makulangan yung oil companies natin para meron tayong second buffer.”

["The government will purchase 2 million barrels. This is in addition to what our local oil companies are buying. As of today, the government has already purchased approximately 1.044 million barrels of diesel, with about 144,000 arriving this week. We are reserving that stock in case our oil companies run short, so that we have a second buffer."]

At the same time, authorities are accelerating discussions on domestic energy development, including expanded exploration of the Malampaya gas field and potential reserves in Liguasan Marsh in Mindanao, the report added. Studies cited in discussions suggest Liguasan may hold significant natural gas and crude oil deposits, though exploration remains limited due to security and investment concerns.

Renewable energy development is also being pushed, but it currently accounts for about 23% of the country’s energy mix, with solar contributing around 3%.

Atty. Baga warned that electricity prices could still rise further as supply pressures continue.

“Mas lalo hong maghihirap din dito ang taong bayan po,” he said.

[“Ultimately, it is the Filipino people who will suffer the most from this situation.”]

Beyond short-term interventions, Baga said the situation underscores the need for a shift in strategy, including greater investment in diversified local energy sources and reduced dependence on imports.

“I-freeze po ‘yung presyo ng langis… at long term… i-develop po natin sa Pilipinas lahat ng klase ng energy resources,” he said.

[“We should freeze oil prices... and for the long term... let’s develop all types of energy resources here in the Philippines.”] —JCB, GMA Integrated News