Palace: No need for state of emergency yet

By Chloe Mari A. Hufana, Reporter

THE Philippines does not need to declare a state of national emergency to take over the oil industry as the situation remains “in control,” the Presidential Palace said on Tuesday, amid rising fuel prices driven by the Middle East crisis.

“We are not yet in that situation,” Palace Press Officer Clarissa A. Castro said Filipino in a livestreamed press briefing.

The government, through the Department of Energy (DoE) under Secretary Sharon S. Garin, maintains a constant communication with oil companies and their leaders, she noted, adding Congress’ move to draft a measure that grants President Ferdinand R. Marcos, Jr.’s emergency powers to reduce or suspend excise tax on fuel.
“Our only request is that, given the current circumstances, let us refrain from activities such as fear‑mongering, which only add to the anxiety of our people,” Ms. Castro also said.

“The President and the government remain in control of the situation.”

Ms. Castro’s comments followed calls for Mr. Marcos to declare a state of national emergency for the government to temporarily take over the oil industry to regulate fuel prices.

House Deputy Speaker Raymond Democrito C. Mendoza earlier this week said the President can invoke Section 14(e) of Republic Act No. 8479, which states that “in times of national emergencies, when the public interest so requires, the DoE may, during the emergency and under reasonable terms prescribed by it temporarily takeover or direct the operation of any person or entity engaged in the industry.”

The lawmaker said that while the conflict is thousands of kilometers away, it becomes a national emergency when it begins dictating how Filipino families eat, ride and pay for their needs.
Asked about the Palace’s position on calls to repeal Republic Act No. 8479 or the Oil Deregulation Law, which liberalized the oil industry, Ms. Castro said it is up to Congress.

“It is up to Congress to decide what they think or what they see as good for our country, and if they can show or influence our President through their drafting of laws, all that will benefit the country, the President will not oppose it,” she added.

Ms. Garin earlier said the agency has no authority to set price ceilings on fuel prices due to the said law but added she is in favor of revisiting the law to a certain extent.

Noel M. Baga, co-convenor of the Center for Energy Research and Policy think tank, said the Philippine government already has sufficient legal authority to shield consumers from surging fuel prices during crises, pushing back against calls for more drastic state intervention in the oil industry.

Existing laws such as the Price Act of the Philippines and the Philippine Disaster Risk Reduction and Management Act allow authorities to impose price ceilings on petroleum products during a declared national emergency, he said.

These powers, he added, are not curtailed by the Oil Deregulation Law, countering claims that government intervention would violate the country’s liberalized downstream oil market framework.

“The legal tools to protect consumers are already there,” he said via Facebook Messenger. “There is no need for an industry takeover when these powers already exist.”

Instead, the constraint lies in execution. Deploying price controls would require stronger political resolve as global oil volatility feeds into domestic inflation, disproportionately affecting low- and middle-income households.

“Every peso added to fuel prices is a peso taken from Filipino families,” he said.

Over the longer term, structural reforms remain key. Expanding domestic renewable energy capacity would reduce the Philippines’ exposure to external price shocks and lessen dependence on imported fuel, he said, providing a more durable solution than short-term market interventions.