Energy emergency sparks urgent calls for policy shift

CEBU, Philippines — Business groups in Cebu are calling for urgent policy intervention after the Philippine government declared a national energy emergency, warning that prolonged supply disruptions tied to the Middle East conflict could ripple through inflation, jobs and competitiveness.

Mandaue Chamber of Commerce and Industry (MCCI) president Barabara Gothong-Tan said the declaration highlights structural weaknesses in the country’s fuel supply chain that have persisted even before the latest geopolitical shock.

“Energy remains the lifeblood of the economy, and uncertainty in supply sources is deeply concerning,” Gothong-Tan said, noting that elevated fuel costs could trigger broader economic strain.

She urged the government to consider suspending excise taxes and value-added tax on fuel and to fast-track the development of alternative and sustainable energy sources to stabilize supply.

Likewise, the Talisay Chamber of Commerce and Industry echoed concerns about timing and preparedness.

Talisay chamber president Carl Cabusas said the emergency declaration had been widely anticipated early in the conflict, suggesting that an earlier move could have allowed businesses—particularly micro, small and medium enterprises—to better adjust operations.

“Earlier signals would have enabled MSMEs to recalibrate strategies amid rising energy costs and market volatility,” Cabusas said.

Still, he said the chamber supports the measure, provided it is paired with “clear, responsive and targeted interventions,” including relief mechanisms for businesses most exposed to fuel price swings.

The Philippines’ dependence on imported energy leaves it vulnerable to external shocks, with the current Middle East tensions adding pressure to already tight supply chains.

Business leaders warned that without swift and coordinated action, higher energy costs could erode margins, dampen hiring and weaken the country’s position in an increasingly competitive regional economy.

Both groups said they are prepared to work with government agencies to mitigate the impact on local enterprises as volatility in global energy markets persists.