State of national energy emergency declared amid rising fuel prices

National

PRESIDENT Ferdinand Marcos Jr. has declared a state of national energy emergency as fuel prices continue to surge and global supply concerns intensify.

Through Executive Order No. 110, Marcos ordered a whole-of-government response under the Unified Package for Livelihoods, Industry, Food and Transport (UPLIFT), which will be led by key agencies including the Departments of Energy, Transportation, Agriculture, Social Welfare, and Finance.

Marcos said the ongoing Middle East conflict has triggered “uncertainty in global energy markets, severe disruption in supply chains and significant volatility and upward pressure on international oil prices,” posing a threat to the country’s energy security.

In a report by Philstar, Energy Secretary Sharon Garin earlier recommended urgent interventions, warning that the situation poses “an imminent danger of a critically low energy supply,” prompting the need for energy allocation measures.

In response, lawmakers are pushing for additional relief for consumers.

Senator Bam Aquino is among those proposing the reduction or suspension of the 12-percent value-added tax (VAT) on fuel, noting its impact on pump prices. “It is 12 percent of the price of fuel… it would be considerable,” he said.

Energy Undersecretary Felix Fuentebella confirmed that discussions are ongoing but may lean toward adjusting the tax rate instead of full suspension.

“It’s more of having a different rating… probably a zero rating or a lower rating,” he explained.

Aquino assured that the Senate is ready to act, saying, “The Senate is ready to pass such reform if necessary… we will go back and have a special session if needed.”

However, economic managers raised concerns over the possible impact of removing fuel taxes. Department of Economy, Planning and Development Secretary Arsenio Balisacan warned that while lowering taxes may reduce inflation, it could also affect government revenues and economic growth, with potential risks to the country’s fiscal position.

Meanwhile, Marcos acknowledged limits in stabilizing the peso amid global pressures. “We will defend the peso to an extent, but we also recognize that there’s only so much you can do,” he said, adding that “it will be futile to spend all our foreign reserves” to counter the dollar’s strength. The declaration highlights growing uncertainty over fuel supply and prices, as the government balances immediate relief measures with long-term economic stability.(Samantha Faye Alcoma, CTU-TC BAEL-ELSD Intern)