Manila: Senator Sherwin Gatchalian on Monday stressed the need to safeguard the Philippines' energy security amid external supply risks following continued pressure on fuel and electricity prices as political unrest in Iran roils global oil markets. In his proposed Senate Resolution No. 278, Gatchalian said the situation "requires enhanced reporting, updated inventory assessments, contingency planning, and supply-diversification measures to mitigate domestic impacts."
According to Philippines News Agency, although the Philippines does not import Iranian crude due to international sanctions, Gatchalian said instability in Iran can still push up global oil prices because the petroleum market "operates as an interconnected global system where disruptions in one major producer elevate benchmark prices worldwide." He noted that domestic fuel prices have risen in recent weeks, partly due to geopolitical tensions linked to Iran, with another round of oil price hikes expected on Tuesday.
The resolution also warned that sustained increases in oil prices could translate into higher electricity costs, particularly in off-grid and missionary areas reliant on diesel-fed power plants operated by the National Power Corporation-Small Power Utilities Group. "Sustained increases in oil prices significantly raise the cost of electricity generation, particularly in off-grid and missionary areas dependent on diesel-fed power plants," Gatchalian said.
Citing Department of Energy data, Gatchalian said the Philippines is a net importer of petroleum and remains highly exposed to fluctuations in global crude oil prices, particularly those originating in the Middle East, which supplied 96.8 percent of the country's crude oil imports in 2024.
