Reed NewsReed News

Philippines, Madagascar declare energy emergencies amid Middle East conflict

Economy & businessEconomy
Philippines, Madagascar declare energy emergencies amid Middle East conflict
Key Points
  • Philippines declares one-year national energy emergency with immediate conservation measures
  • Madagascar declares two-week energy emergency due to fuel shortages from Middle East conflict
  • Southeast Asian and African nations implement various energy-saving and fiscal measures amid supply disruptions

Philippine President Ferdinand Marcos Jr. has declared a one-year national energy emergency due to the war in the Middle East and the risk of a critically low energy supply. The Philippine government has ordered all national government agencies, state universities and colleges, and local government branches to reduce fuel consumption by at least 10%. Philippine government offices have been told to adopt flexible work arrangements and set air conditioning units no lower than 24 degrees Celsius. The Philippines relies on imports for almost all its oil needs, with 90% from the Persian Gulf.

Longer-term adjustments are under consideration, with the Philippines weighing a four-day working week, especially if the Middle East crisis worsens. Financial relief is also being rolled out, including 5,000 pesos ($83) each to large numbers of motorcycle taxi drivers and other public transport workers nationwide to help cope with soaring fuel prices. The Philippines is providing free bus rides to students and workers in selected cities. The exact impact of the Middle East conflict on fuel prices and supply timelines remains unclear, and it is unknown whether the four-day workweek has been formally discussed or approved by the cabinet.

In Madagascar, the presidency has declared a two-week nationwide state of energy emergency amid severe fuel shortages caused by the US and Israel's war in Iran. Madagascar relies on oil to produce much of its electricity and depends on fuel imports from the Middle East, with most oil coming from Oman. Specific measures under the emergency declaration have not been detailed, leaving uncertainty about how the government intends to address the shortages.

Across Southeast Asia, other nations are implementing energy-saving measures amid reported fuel shortages. Thailand's defense ministry has advised agencies under its control to cut back on air conditioning use and use video conferencing to avoid unnecessary travel. In Myanmar, the military rulers have banned half of private vehicles from the roads, with even-numbered plates permitted only on even dates and odd-numbered plates only on odd dates. Queues have been reported at petrol stations across Thailand, Laos, and Myanmar over the past week, highlighting widespread supply challenges.

African governments are also taking fiscal and administrative actions to mitigate fuel price impacts. The Gambia has ordered the immediate suspension of all non-essential official travel by government officials. Zambia has suspended taxes on petrol and diesel imports, while Botswana has scrapped fuel levies for six months to cushion consumers from price rises. The effectiveness and duration of these energy-saving measures across Southeast Asia and Africa remain to be seen.

To control electricity costs, the Philippines plans to boost the output of its coal-fired power plants to keep electricity costs down, as coal accounts for about 60% of its electricity generation. Energy Secretary Sharon Garin stated that the government has talked to generation companies and coal-powered plants to check how much they can increase their generation, adding that if successful, this could decrease electricity rate hikes due to the Middle East conflict.

Tags
People & Organizations
Confirmed

Based on 5 sources, 1 official

5sources
1Verified
5Open
No contradictions

Produced by Reed

Philippines, Madagascar declare energy emergencies amid Middle East conflict | Reed News