Iran-US tensions spark crisis: Country declares year-long energy emergency as fuel prices skyrocket
The country relies heavily on Gulf countries for 98% of its oil needs, and disruptions have led to increased petrol and diesel prices, sparking concerns over inflation and living costs
Manila (The Uttam Hindu): The impact of rising tensions in West Asia is now clearly visible in many countries around the world. In response, the Philippines has declared a national state of emergency, citing the looming threat to energy supplies. President Ferdinand Marcos Jr. issued an order stating that maintaining fuel availability and protecting the economy from shocks has become crucial in the current situation.
Impact on the Strait of Hormuz Raises Concerns
Ongoing tensions with Iran, which also involve the United States and Israel, have impacted traffic through the Strait of Hormuz. This route is considered the backbone of global oil supplies. The disruption has led to a sharp rise in international oil prices and increased supply pressure.
Import dependence poses a significant challenge
The Philippines relies on Gulf countries for approximately 98% of its oil needs. Following the crisis, the country has seen a significant increase in petrol and diesel prices, increasing both the cost of living and inflation.
To address the situation, the government has established a special monitoring committee to oversee the supply of fuel, food, and medicine. The government has also been granted special powers to purchase oil directly to ensure supply chains are not disrupted. This emergency is currently in effect for one year, and can be extended or terminated if necessary.
The decision has drawn mixed reactions across the country. While some are calling it a need of the hour, labor unions have criticized it, saying that the situation was initially described as normal and now, suddenly, a state of emergency has been imposed.
Workers in the transport sector, upset by rising fuel prices, are preparing for a strike. They say the high fuel prices are directly affecting their income. The government has also implemented some relief measures, such as subsidies for drivers and reduced working days to reduce fuel consumption.
The country currently has limited fuel reserves, posing a significant challenge not only to the Philippines but also to other oil-importing countries around the world.