Philippines declares national energy emergency due to Iran war
The Philippines, an archipelago highly dependent on foreign countries, has become the first country in the world to declare a state of national energy emergency as a result of the war between the United States and Israel against Iran. President Ferdinand Marcos Jr. on Tuesday signed an executive order to safeguard energy security due to the “imminent danger” looming over gas and crude oil supplies.
The blockage in the busy sea passage of the Strait of Hormuz, one of the collateral effects of the conflict, has caused an earthquake in global energy markets, and the shock waves of shortages and price increases have especially hit states like the Philippines, which imports almost 100% of its oil from the Persian Gulf, and around a quarter of its total energy supplies from the Middle East. In the South Asian country, home to almost 116 million people, the price of diesel and gasoline has more than doubled since war broke out on February 28.
The new provision, which will remain in force for one year unless the president revokes it sooner, will give the Government the ability to coordinate measures that guarantee energy stability and protect the economy. The Executive will have the power to directly purchase fuel and petroleum products to reinforce the supply, and a committee will also be formed to oversee the orderly distribution of energy resources, food, medicines and other essential goods.
The idea is to act jointly by supporting key sectors, such as transport, agriculture and micro, small and medium-sized businesses. The initiative also grants the Department of Transportation the power to reduce or suspend tolls and aviation taxes, and to channel rapid aid to groups of people who are in “crisis situations.”
Previously, the granting of direct aid of 5,000 pesos (about 72 euros) to motorcycle taxi drivers – one of the most popular forms of transportation – and other public transport services had been approved to reduce the impact on the pockets of employees in the sector, and some cities have decreed free transportation for some groups, such as students.
With one of the highest electricity costs in the region, the Philippines also relies heavily on imported fuel to keep its plants running. To try to prevent, due to the gas shortage, the rate from skyrocketing even further in this country where per capita income does not reach 3,500 euros, the Government has assured that it will temporarily opt for a greater presence of coal, also mostly imported, in the generation of electrical energy.
