Statement on PBBM's Declaration of Energy Crisis

01 April 2026 – The Makati Business Club lauds the government’s declaration of a national energy emergency, which recognizes the Philippines’ continued vulnerability to external supply shocks and volatile global oil markets.

The declaration can help mobilize resources, streamline responses, and bring into sharper focus longstanding structural issues in the country’s energy sector. Ultimately, this declaration should serve as a catalyst for deeper reforms that strengthen not only the country’s energy security but also other aspects of the economy such as transportation, logistics, agriculture, and manufacturing, among others.

In the meantime, the Makati Business Club recognises the importance of providing assistance to the affected sectors of society most impacted by the high prices, e.g. farmers, fishermen, and public utility drivers. Given the limited fiscal space of the government, we believe that the suspension of excise taxes on fuel will further erode the government’s ability to provide the short-term targeted assistance needed while other medium and long-term projects are being implemented.

Perhaps most importantly, suspending excise taxes has the same effect as a broad fuel subsidy that will maintain demand levels higher than they otherwise would be, at a time when supply is in question given the current geopolitical situation. The companies we represent do not need subsidies – those should be directed to jeepney drivers, etc – but we do need supply, and believe an efficient market and enlightened regulation our best bet at securing it.

This crisis should force the country to hasten planned infrastructure programs such as cold storage facilities, port upgrades, etc., to bring down the cost of agricultural products. The need to utilize innovation and technology for a more efficient economy, e.g., utilizing empty returning trucks to backhaul other goods, resulting in almost halving the transportation cost. This could be institutionalized through a National Logistics Digital Backbone—a government-sanctioned platform where every delivery truck must report empty capacity, creating a “Grab for Logistics” that lowers food prices permanently.

There should be many other initiatives that the government and the private sector can work on together to make our economy more efficient and resilient. But all these will need funding, and foregoing the excise taxes will make it more difficult for the government to support all these needed initiatives/reforms.

The Makati Business Club underscores the importance of clear, consistent, predictable, and transparent policy to attract and retain investment, which is much needed to generate more jobs and grow the economy. Let’s use this crisis as an opportunity to effect and institutionalize the much needed reforms so we come out much stronger and we can realize the full potential of our country!