After days of his aides dodging the use of the word “crisis” to describe the rising fuel prices in the Philippines amid the escalating tensions in the Middle East, President Ferdinand Marcos Jr. declared a “state of national energy emergency” on Tuesday, March 24.

The state of national energy emergency stays in place for a year, unless Marcos decides to cut it short or extend it. 

In the same Executive Order No. 110, Marcos ordered the adoption of UPLIFT, or the Unified Package for Livelihoods, Industry, Food, and Transport – the administration’s name for its coordinated, “whole-of-government” effort to ease the impact of the Gulf crisis on the Philippines.

Marcos’ plan and response to a crisis that’s been announcing its arrival for over a month was, for the first time, outlined in EO 110.

So what is in it, exactly? 

What triggered the declaration? 

In justifying his declaration, Marcos cited the war launched by the United States and Israel against Iran that has “created uncertainty in global energy markets,” among others. Marcos also cited the near-closure of the Strait of Hormuz and its “corresponding implications on the stability and adequacy of our domestic energy supply.” 

The Philippines sources nearly all of its oil from the Middle East. Most of the shipments to Manila pass through the Strait of Hormuz, which once carried nearly 20 million barrels of oil daily.

Oil production and shipment have grinded to a near standstill since the US and Israel’s strikes against Iran in February 28. Hostilities have escalated steadily — targets have long gone beyond military or military-adjacent ones, with both sides targeting critical infrastructure, including oil and gas plants. 

In the Philippines, a net importer of petroleum, this has driven a sharp rise in fuel prices and is expected to push up the cost of basic goods. Transport strikes have already occurred and are expected to continue in a country with a notoriously inadequate public transportation system.

Marcos, citing Energy Secretary Sharon Garin, said the situation in the Middle East posed “an imminent danger of a critically low energy supply” that necessitates “urgent measures” to stabilize the Philippines’ energy supply. 

So what if there’s a ‘national energy emergency?’ 

Marcos cites Republic Act No. 7638, which created the energy department, as the basis for declaring “critically low energy supply or the imminent danger thereof.” 

Such a declaration would allow the energy secretary to implement “fuel and energy allocation plan” which would involve, among others, power or fuel rationing, load curtailments, and restrictions on the use of government vehicles and resources. 

In other words, Garin would need to devise a plan to stretch and properly allocate the fuel supply the Philippines currently has or is expected to receive.

Measures the energy department can take, based on the EO, include but are not limited to: 

• Enforcing appropriate energy conservation measures; 
• Coordination with other goverment agencies to ensure energy supply stability and reduce the impact on consumers;
• “Taking action” against hoarding, profiteering, supply manipulations; 
• Temporarily taking over or directing operations of various parts of the energy industry in the Philippines, based on RA 8479 (Downstream Oil Industry Deregulation Act of 1998), RA 12120 (Philippine National Gas Industry Development Act), and RA 9511 (granting a franchise to the National Grid Corporation); 
• Directing attached agencies and government-owned and -controlled operations of the department to “assist” in ensuring a stable fuel and energy supply, including procuring fuel and petroleum products – they are also allowed to make advance payments exceeding 15% of the total contract amount; 
• Ensuring strict implementation of energy saving measures across government 

No crisis, but UPLIFT? 

UPLIFT’s implementation will be conducted by a committee, which Marcos himself heads. Other members include the executive secretary, and the secretaries of the energy department, transportation department, social welfare department, the agriculture department, finance department, budget department, and the Department of Economy, Planning, and Development (DepDev). 

DepDev, formerly the National Economic and Development Authority or NEDA, serves as the secretariat of the committee. 

For the most part, the UPLIFT committee’s job is to make sure that the Philipines’ economy and its social services operate smoothly despite the rise in oil prices. 

Its functions include: 

• Ensure that the rise in energy prices will not affect the flow and availability of fuel, food, medicine, agricultural products, and other essentials, or the operations of public transport, public services, public utilities, healthcare facilities, and other critical infrastructure;
• “Formulate longer-term demand-side” solutions to lower the consumption of petroleum products in private sector, including hastening the transition to electric vehicles in mass transportation and renewable energy in agriculture, logistics, and manufacturing, the development of active transportation infrastructure, and “supporting behavioral change through public awareness campaigns” 
• Submit regular reports to the President

What support does the government plan to extend during this emergency? 

Aside from advocating for electric vehicles in public transportation and in active transportation, EO 110 indicates the following forms of support for transportation: 

• Fuel subsidy allocations and commuter fare subsidies 
• Expansion of public transport services, including Libreng Sakay, extension of operating orders of the Light Rain Transit and Metro Rail Transit systems in Metro Manila 
• Creating “priority transport lanes” 
• Measures to reduce transportation costs including temporary reduction, suspension, or deferral of toll charges, aviation charges, or landing fees 

The social welfare department would focus on extending assistance under the Assitance of Individuals in Crisis Situations program, as well as provide support for sectors most affected by the fuel price increases, including transport workers, farmers, fisherfolk, displaced workers, and overseas Filipino workers forced to return home. 

The trade department, meanwhile, is tasked to monitor and “implement remedies to address excessive or unreasonable price increases” on basic necessities or prime commodities. It is also tasked to implement support programs for micro, small, and medium enterprises. 

For farmers and fisherfolk, the agriculture department is tasked to ensure a good supply of food products and agricultural inputs, as well as to provide support to “support food security and protect agricultural livelihoods.” Aid and the use of the Quizk Response Fund should also be used to support farmers and fisherfolk. 

The Department of Migrant Workers is tasked to continue focusing on the repatriation of workers who want to flee Gulf states, as well as provide support for those who do return home. 

The Department of Finance, alongside DepDev and the Central Bank, are tasked to “closely monitor” the impact of the Middle East crisis on the Philippine peso and OFW remittances, as well as the “risks of peso depreciation arising from shifts in investor behavior and sustained higher oil prices.” The budget department is tasked to make available proper funding sources to both the national government and local governments. 

Law enforcement, led by the Philippine National Police, is tasked to maintain peace and order and protect communities, facilities, and critical infrastructure. 

Local governments are “strongly urged” to actively support the national government by adapting their own policies that complement the administration’s plans, including realigning or reallocating local funds “to mitigate the impact” of the Middle East crisis. 

The private sector is also “strongly urged” to work with government agencies and local governments to support vulnerable sectors and to implement energy-saving measures, including giving workers the option to work from home. – Rappler.com