Business Groups Demand Coordinated Response to National Energy Emergency
In the wake of President Ferdinand Marcos Jr.'s declaration of a state of national energy emergency, business organizations across the Philippines are urgently calling for a clear and coordinated government response plan. The declaration, prompted by the ongoing US-Israel conflict with Iran, highlights significant vulnerabilities in the country's energy supply chain, with warnings of escalating costs and threats to economic competitiveness.
Long-Standing Weaknesses Exposed
Barbara "Bambi" Gothong-Tan, President of the Mandaue Chamber of Commerce and Industry (MCCI), emphasized that the emergency declaration underscores long-standing weaknesses in the nation's energy infrastructure. These issues have already led to persistent disruptions, affecting fuel stability and overall economic health. "The declaration, while significant, underscores the urgency of addressing vulnerabilities that have long impacted fuel stability," she stated. Gothong-Tan stressed that energy serves as the "lifeblood of the economy," noting that uncertainty in supply sources could trigger a ripple effect on inflation, employment, and global competitiveness.
She urged the national government to act "swiftly and decisively," proposing measures such as reviewing and possibly suspending excise taxes and value-added tax on fuel. Additionally, she called for accelerated efforts to secure alternative and sustainable energy sources. "At this critical juncture, timely and coordinated action will be essential to cushion the impact on businesses and consumers and to safeguard economic resilience," she added.
Call for Targeted Interventions
The Talisay Chamber of Commerce and Industry echoed these concerns, noting that the declaration had been widely anticipated since the early stages of the Middle East conflict. Chamber president Carl Cabusas argued that an earlier declaration could have helped micro, small, and medium enterprises (MSMEs) better prepare for volatile fuel and power costs. "Given the global supply disruptions and volatility, earlier action would have allowed MSMEs to strategize more effectively," he said.
Cabusas emphasized the need for "clear, responsive, and targeted interventions," particularly relief and support mechanisms for businesses most vulnerable to energy price swings. "We look forward to working closely with relevant agencies to ensure that the concerns of our local business community are heard and addressed," he stated.
Exporters Face Rising Costs
The Philippine Exporters Confederation Inc. (Philexport) welcomed the declaration but warned that exporters are already feeling the impact of rising fuel costs. These increases are pushing up logistics, shipping, and production expenses, threatening the competitiveness of Philippine exports in a challenging global market. "These increases risk eroding the competitiveness of Philippine exports in an already challenging global market," Philexport noted.
To mitigate these effects, the group called for targeted support measures, including:
- Temporary relief on fuel and logistics costs
- Waivers on government shares in port and toll fees
- Faster rollout of fuel subsidy programs for critical industries
Philexport also urged the government to accelerate trade facilitation and digitalization efforts to reduce non-energy costs and coordinate closely with logistics providers to prevent excessive rate increases. The group advised exporters to adopt energy-efficient practices, optimize supply chains, and explore alternative markets and transport strategies. "Close collaboration between government and industry will be key to ensuring the country weathers the crisis and emerges more resilient and competitive," it concluded.
Background on the Emergency Declaration
President Ferdinand "Bongbong" Marcos Jr. declared the state of national energy emergency on March 24, 2026, citing the "imminent danger" to the availability and stability of the country's energy supply due to the ongoing conflict. He signed Executive Order No. 110, which authorizes the Unified Package for Livelihoods, Industry, Food and Transport (Uplift). This package aims to safeguard national interests by ensuring stable domestic energy supply, uninterrupted essential services, continuity of economic activity, and the welfare of vulnerable sectors, while mitigating the impact of the conflict in oil-rich regions.
