By Chloe Mari A. Hufana, A reporter
The Philippines does not need to declare a national emergency to seize the oil industry as the situation is “still under control,” the Presidential Palace said on Tuesday, amid rising fuel prices caused by the Middle East crisis.
“We’re not in that situation yet,” Palace Press chief Clarissa A. Castro said in a live press conference.
The government, through the Department of Energy (DoE) under Secretary Sharon S. Garin, maintains constant communication with the oil companies and their leaders, he noted, adding the move by Congress to write a measure empowering President Ferdinand R. Marcos, Jr.
“All we ask is that, given the current situation, we avoid doing things like spreading fear, which increases the anxiety of our people,” said Ms. Castro.
“The President and the government are still in charge of the situation.”
Mrs. Castro’s comments follow a suggestion that Mr. Marcos declare a national emergency so that the government can temporarily take over the oil industry to control fuel prices.
Deputy Speaker of the House Raymond Democrito C. Mendoza earlier this week said the President can use Section 14(e) of Republic Act No. 8479, which states that “in times of national emergency, when the public interest so requires, the DoE, during the emergency and under reasonable conditions determined by it, may suspend or direct the operation of any person or organization.”
The lawyer said that although the conflict is thousands of kilometers away, it becomes a national emergency when it starts to dictate how Filipino families eat, ride and pay for their needs.
When asked about the position of the Palace regarding calls to repeal Republic Act No. 8479 or the Oil Deregulation Act, which freed the oil industry, Ms. Castro said it is up to Congress.
“It is up to the Congress to decide what they think or see is good for our country, and if they can show or influence our President by writing laws, everything that will benefit the country, the President will not oppose it,” he added.
Ms. Garin previously said that the agency does not have the authority to set fuel prices because of this law but added that it is in line with the revision of the law to some extent.
Noel M. Baga, a convenor of the Center for Energy Research and Policy think tank, said the Philippine government already has enough legal authority to protect consumers from rising fuel prices during the crisis, pushing back on calls for government 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 set price limits on fuel products when a national emergency is declared, he said.
This power, he added, was not curtailed by the Oil Cut Act, arguing that government intervention would undermine the country’s free downstream oil market structure.
“Legal tools to protect consumers already exist,” he said of Facebook Messenger. “There is no need to take over the industry if this power is already there.”
Rather, the limitation is in execution. Removing price controls will require strong political will as global oil volatility seeps into domestic currencies, affecting low- and middle-income households equally.
“Every peso added to fuel costs is a peso taken from Filipino families,” he said.
Over time, structural changes remain important. Increasing domestic renewable energy capacity will reduce the Philippines’ exposure to foreign price shocks and reduce dependence on imported fuel, he said, providing a more long-term solution than short-term market interventions.
