Philippines Declares National Energy Emergency as Gulf Oil Runs Dry

The Philippines declared a national energy emergency on Friday, ordering fuel rationing for transport and industry as the country's strategic petroleum reserves fell below 15 days of supply. President Ferdinand Marcos Jr. signed Executive Order No. 42 authorizing the Department of Energy to impose allocation controls across all 17 regions.

The Philippines imports more than 90% of its crude oil and refined products, with the bulk transiting the Strait of Hormuz — now in its fifth week of near-total blockade following the US-Iran war. Ship crossings through the strait have collapsed from over 130 per day to single digits, according to maritime tracking data from Lloyd's List.

Domestic diesel prices in Metro Manila have risen 78% since the start of March, according to the Department of Energy's weekly monitoring report. Unleaded gasoline hit 104 pesos per liter at stations in Quezon City on Thursday, up from 58 pesos five weeks ago.

Flights grounded, factories idled

Philippine Airlines and Cebu Pacific cancelled a combined 340 domestic and regional flights between April 4 and April 10, according to Civil Aviation Authority of the Philippines statements. Cebu Pacific said it was "unable to secure adequate jet fuel supply" at Clark and Mactan-Cebu airports.

The energy department directed oil companies to prioritize fuel distribution to hospitals, water utilities, and food transport. Industrial users — including manufacturing plants in the Cavite and Laguna export zones — were told to cut consumption by 30% or face supply disconnection.

"We are rationing to survive," Energy Secretary Raphael Lotilla told reporters at a Friday briefing. "This is not a drill. This is the reality of being a 90% import-dependent nation during a Gulf war."

Power grid under pressure

The Visayas and Mindanao grids face a separate but compounding problem. Three coal-fired plants totaling 1,200 megawatts are offline for scheduled maintenance, and summer demand typically peaks in April and May. The National Grid Corporation of the Philippines warned of possible rotating brownouts in Metro Cebu and Davao if temperatures exceed 36°C through the weekend.

Japan, South Korea, and Bangladesh have already imposed energy conservation measures this week, but the Philippines is the first major Asian economy to declare a formal emergency and invoke rationing authority.

For Manila, the situation echoes. Philippine media drew comparisons to the 1990s power crisis that caused daily blackouts for years. Korean press agency Yonhap ran the declaration under a regional energy security analysis. Reuters filed it as part of a broader Asian fuel crisis roundup, with the Philippines sharing column space alongside Vietnam and Thailand.

Iran's selective passage offers little

Iran has allowed a small number of vessels through Hormuz in recent days — French, Japanese, and Omani flagged ships made crossings this week. Tehran also permitted a Philippine-flagged fertilizer vessel through on Wednesday, according to the Philippine Embassy in Muscat.

But energy analysts said the trickle is strategic, not humanitarian. "Iran is using selective passage as leverage," said Henning Gloystein, director of energy at Eurasia Group. "A handful of ships do nothing for a country burning through 400,000 barrels a day of imports."

The Philippines consumed approximately 480,000 barrels per day in 2025, according to the International Energy Agency. At current reserve levels and import rates, the country has roughly 12-14 days before rationing tightens further.

What comes next

Marcos is scheduled to address the nation on Monday. The energy department said it would release updated reserve figures weekly and review the rationing order every seven days. The 40-nation Hormuz coalition led by the UK is set to meet again on April 7, but has produced no concrete reopening timeline.

For the 115 million Filipinos navigating shorter work hours, grounded flights, and climbing food transport costs, the question is not whether the crisis will deepen — it is how fast.