Philippines declares national energy emergency as transport strike looms

The Philippines has become the first country in the world to declare a state of national energy emergency in response to the war in Iran, as transport groups prepare a two-day nationwide strike on 26 and 27 March 2026 over fuel prices that have more than doubled since hostilities erupted last month.

President Ferdinand Marcos Jr signed an executive order citing the "imminent danger posed upon the availability and stability" of the country's energy supply. The declaration is anchored on a determination by DOE Secretary Sharon Garin that hostilities involving the United States, Israel and Iran have created severe disruptions in global energy supply chains and significant upward pressure on oil prices.

The Philippines imports 98% of its crude oil from the Gulf. Since the war began on 28 February 2026, the effective closure of the Strait of Hormuz — a critical global shipping route — has sent shock waves through energy markets across the region.

National energy emergency declared

The executive order is issued under Section 25 of Republic Act 7638, the Department of Energy Act of 1992, which authorises the President to declare a critically low energy supply or imminent danger thereof upon recommendation of the Secretary of Energy.

As its central response framework, the order adopts the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) — a whole-of-government structure chaired by the President, with the Executive Secretary and the secretaries of Energy, Transportation, Social Welfare and Development, Agriculture, Finance, Economy Planning and Development, and Budget and Management as members.

Under the order, the Philippine National Oil Company (PNOC) and PNOC Exploration Corporation are authorised to directly procure fuel and petroleum products, including authority to make advance payments exceeding 15% of contract value — a significant departure from standard government procurement rules.

The declaration will remain in place for one year unless extended or lifted by the president. It follows calls from several senators urging Marcos to formally acknowledge what they described as an "emergency-level" hardship faced by Philippine families due to soaring oil costs.

Prices spike again ahead of strike

Fuel prices rose again on Tuesday, with diesel now retailing at approximately Philippine peso (₱) 126 to ₱130 per litre — more than double the ₱57.60 per litre recorded in January 2026. Gasoline has risen from ₱54.90 per litre in January to around ₱94 to ₱99 per litre.

Most oil firms announced the latest increases as a single large adjustment, departing from the staggered approach used over the preceding fortnight. The Department of Energy (DOE) confirmed that diesel prices rose by ₱15 to ₱18 per litre in Tuesday's adjustment, with gasoline up ₱8 to ₱12 per litre and kerosene up ₱12 to ₱22 per litre.

DOE Secretary Sharon Garin acknowledged that Philippine fuel prices had risen more steeply than in neighbouring countries, attributing the disparity to the absence of government subsidies on petroleum products.

"The oil industry is deregulated, meaning oil firms get to decide how to price fuel products," Garin said.

Supply picture and coal shift

Despite the price surge, the DOE said current inventory levels did not warrant declaring a crisis — though the national energy emergency declaration has since superseded that assessment. Garin said the Philippines held around 45 days of in-country available petroleum supply, broken down as follows: gasoline at 53.14 days, diesel at 45.82 days, kerosene at 97.93 days, jet fuel at 38.62 days, fuel oil at 61.49 days and liquefied petroleum gas (LPG) at 23.51 days.

Garin added that the country would temporarily increase its reliance on coal-fired power plants to meet energy needs, in response to surging costs for liquefied natural gas (LNG).

The government has budgeted approximately ₱20 billion to procure around two million barrels of diesel, which would extend current inventory by a further 10 days. Negotiations for orders from China and Russia remain ongoing, with no concrete outcomes reported as yet.

Asia is particularly exposed to the Hormuz blockade. Nearly 90% of all oil and gas that passed through the strait last year was destined for the region.

Labour coalition criticises emergency order

One of the Philippines' main labour coalitions, the Kilusang Mayo Uno (KMU), strongly criticised the emergency declaration. It described the order as an "admission" that the government had failed to address the oil crisis, and accused the administration of downplaying the situation, saying earlier claims that "everything is normal" were misleading.

The KMU also raised concerns about what it described as "anti-worker provisions" in the executive order — specifically clauses that it said could restrict activities deemed to be disrupting economic activity, including strikes. The coalition warned this could effectively limit workers' ability to protest at a time when fuel prices are already cutting deeply into incomes.

Business figures, however, have expressed support. Tycoon Manuel Pangilinan, who chairs major utilities companies, said his firms were already feeling the strain of rising energy costs and that the crisis was beginning to affect business operations. He said the government "should have every option" available to steer the economy through the period.

Two-day strike begins Thursday

The No to Oil Price Hike Coalition formally launched at a press conference on 23 March 2026, announcing a two-day nationwide transport strike on 26 and 27 March. The coalition brings together transport and labour groups including Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide (PISTON), Manibela, Laban TNVS, Kariders and Kagulong.

Manibela chair Mar Valbuena said jeepney drivers and operators would be accompanied by drivers and operators of public utility vehicles, trucks, motorcycle taxis and ride-hailing services including Grab and Joyride.

Around 500,000 public utility vehicle drivers are expected to participate nationwide. Approximately 5,000 transport network vehicle service (TNVS) units have expressed support by planning to switch off their applications and suspend operations during the two-day period.

The strike follows an earlier two-day protest held from 19 to 20 March 2026, and is expected to draw significantly broader participation.

Coalition demands

The coalition has presented a six-point set of demands. These include the removal of value-added tax (VAT) and excise tax on fuel, a rollback of oil prices to ₱55 per litre, and the repeal of both the Oil Deregulation Law and the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

Transport and labour groups are also calling for a ₱5 increase in fares for all public utility vehicles and a ₱1,200 (approximately US$20) across-the-board wage increase for workers.

PISTON national chairman Mody Floranda said existing government assistance was inadequate.

"The ₱5,000 fuel subsidy will simply go back to the oil companies, not to our families," he said, describing the measure as a temporary fix that could be exhausted in under two days at current diesel prices.

Roque Isidoro, Secretary-General of the Labor Alliance for National Development, argued that the burden of high fuel prices fell hardest on those least able to absorb it.

"Wages remain stagnant while prices for basic commodities continue to climb, leaving both the employed and the jobless in a desperate state," he said. Isidoro also called for higher taxes on large corporations as an alternative to placing the burden on ordinary workers and commuters.

Nanoy Rafael, convener of the PARA-Commuters Network, said the absence of concrete government solutions was fuelling public anger.

Regional reach

Regional strikes have been planned across multiple provinces and major cities, including Pampanga, Bulacan, Batangas, Bicol, Cavite, and Mindanao, as well as Baguio, Cebu City, Bacolod, Iloilo, General Santos and Davao City.

In Metro Manila, 15 to 20 strike centres have been established. Demonstrators are expected to converge at Welcome Rotonda in Quezon City before marching towards Mendiola.

Fare hike reversal dampens transport sector

The mobilisation comes a day after Marcos suspended a public transport fare increase that had been announced just the day before, offering free rides to commuters instead of the increase.

Louie Dela Paz, Secretary of the Del Marod Transport Cooperative, said the reversal had demoralised many drivers.

"We were hoping for the fare hike, but it was suddenly cancelled. Our drivers are quite discouraged," he said.

Jeepney driver Elmer De Guzman said the economics of operating a vehicle had become untenable.

"Before, we would clear around ₱300 extra. Now we clear ₱600 but it all goes to fuel," he said.

Government response and public safety

The Philippine National Police (PNP) said it would deploy up to 50,000 personnel nationwide during the strike to maintain public order. In Metro Manila, nearly 10,000 officers are stationed at key locations, supported by motorcycle patrols, checkpoints and drone surveillance, according to the National Capital Region Police Office (NCRPO).

NCRPO spokesperson Police Major Hazel Asil said deployments covered critical locations including Bonifacio Monument, EDSA Shrine, the Pandacan Oil Depot, Mendiola and the US Embassy.

Major thoroughfares including EDSA, C5, Roxas Boulevard, Taft Avenue and Commonwealth Avenue are under close monitoring, along with MRT and LRT stations and major terminals.

The Metropolitan Manila Development Authority (MMDA) said road conditions remained manageable and no emergency dispatch vehicles had been deployed. General Manager Nicolas Torre III said the agency's Emergency Operations Centre would respond as needed based on passenger volume and road conditions.

The government has also arranged free rides for commuters across the country. Previous strike measures have included cash subsidies to tricycle drivers, reduced ferry services and a four-day workweek for civil servants to conserve fuel.

Further action threatened

Floranda warned that the two-day strike was the beginning of a sustained campaign.

"This is only the beginning of a series of mobilisations," he said, adding that further action would continue for as long as the government failed to act on the coalition's demands.

Organisers acknowledged that commuter disruptions were likely and urged the public to understand the grievances driving the action.

The dispute underscores mounting pressure on the Marcos administration to respond to rising fuel costs, growing energy insecurity and broader concerns over economic stability — pressures now formalised under a national emergency framework that places the Philippines at the front line of a global energy crisis.