Manila, Philippines – President Ferdinand Marcos Jr. Officially declared a national state of emergency on Tuesday, March 24, 2026, citing increasing risks to domestic fuel supplies and energy stability stemming from the ongoing conflict in the Middle East.
A Vulnerable Energy Landscape
The declaration followed the Department of Energy’s decision to increase coal-fired power generation in an attempt to curb rising electricity rates. This move highlights the Philippines’ susceptibility to fluctuations in global energy markets and geopolitical instability.
Renewed Reliance on Coal
The Philippines, which relies heavily on imported fuels for electricity generation, is temporarily increasing its dependence on coal. This shift is occurring as the cost of Liquefied Natural Gas (LNG) has surged. Maximizing coal production is considered a short-term measure by the Department of Energy to mitigate electricity price increases.
The government is as well exploring options to increase local coal production and is open to increasing purchases from suppliers like Indonesia, which has assured the Philippines it will not restrict coal orders.
Government Actions to Secure Supply
The executive order grants the Department of Energy the authority to build advance payments – up to 15 percent – to secure fuel contracts. It also allows for direct action against hoarding or unfair profiteering. The Department of Transportation is authorized to direct subsidies for public transportation fuel and potentially reduce or suspend toll fees and air travel charges, alongside accelerating assistance to those in “crisis situations.”
President Marcos’ administration is also prioritizing the development of domestic energy resources. In January, the President announced the discovery of “significant” natural gas reserves near the Malampaya offshore gas field, which currently supplies approximately 40 percent of Luzon’s electricity.
Broader Regional Trends
The Philippines’ situation mirrors a broader trend in Asia, where several nations are revisiting coal as a means of addressing energy crises.
Frequently Asked Questions
What triggered the state of emergency?
The ongoing conflict in the Middle East and the resulting risks to the Philippines’ fuel supply and energy stability.
What is the government doing to address the situation?
The government is increasing coal-fired power generation, securing fuel contracts with advance payments, and exploring domestic energy resources.
Will electricity prices increase?
The government is taking steps to mitigate price increases, but the situation remains fluid and dependent on global market conditions.
As global events continue to unfold, will the Philippines be able to balance its short-term energy needs with its long-term sustainability goals?
