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Southeast Asia’s Energy Emergency Begins

14 0
31.03.2026

Welcome to Foreign Policy’s Southeast Asia Brief.

The highlights this week: The Philippines declares an energy emergency, Thailand gets permission to sail the Strait of Hormuz, Singapore wants China to step up, and fuel prices ground planes.

Welcome to Foreign Policy’s Southeast Asia Brief.

The highlights this week: The Philippines declares an energy emergency, Thailand gets permission to sail the Strait of Hormuz, Singapore wants China to step up, and fuel prices ground planes.

Philippines Declares Energy Emergency

On March 24, Philippine President Ferdinand Marcos Jr. declared a national energy emergency.

The Philippines has seen one of the world’s sharpest increases in petrol prices, according to research by AFP, going up more than 50 percent in a month. Diesel prices are even worse, having nearly doubled in the same period.

As part of his statement, Marcos announced the formation of a committee focused on mitigating the impact of price rises on vital sectors and looking for ways for the private sector to consume less fossil fuel.

Other concrete measures included fuel subsidies, commuter subsidies, the expansion of public transport, and the temporary reduction and suspension of toll charges.

The government further announced it was seeking a 30-day rice price cap. It is also considering suspending fuel taxes.

The government has already promoted a slew of measures to try to conserve energy, such as ordering civil servants to use less air conditioning and cut back on travel.

The announcements come as fuel prices prompted strikes by transport workers, a group with a strong tradition of protest.

The energy crunch is prompting the Philippines to also turn to countries with whom it has tricky relationships.

In an interview with Bloomberg, Marcos said there was “certainly” going to be a reset of relations with China.

He suggested the crisis could provide fresh impetus for talks, reopened in 2023 but since stalled, about joint energy exploration in disputed areas of the South China Sea.

Russia has also stepped into the gap, with a tanker carrying more than 700,000 barrels arriving last week. (Moscow’s imminent ban on gasoline exports will likely limit repeats.)

Still, one should not over-index on the idea of a strategic tilt. The Philippines has also turned to Japan for fuel.

There are also signs of anger at the crisis imposed on the country by the United States’ war, with one independent senator denouncing U.S. President........

© Foreign Policy