The Market Monitor Minding the Nation's Business
The government has ordered all state offices to reduce fuel consumption as tensions in the Middle East threaten to drive up global oil prices and disrupt supply.
The directive came after President Ferdinand Marcos Jr. convened a special Cabinet meeting at Malacañang Palace last week to assess the escalating conflict and its possible effects on the Philippines.
During the meeting, officials discussed the situation of Filipinos in the region, potential repatriation efforts, and the broader economic implications of rising oil prices on inflation and national stability.
At the same time, the administration is seeking “emergency power” from Congress to temporarily reduce excise taxes on petroleum products to cushion the impact of projected fuel price hikes.
Following the meeting, the Inter-Agency Energy Efficiency and Conservation Committee (IAEECC) issued a presidential directive urging strict energy-saving measures across the government.
The order, signed by IAEECC chair and Energy Secretary Sharon Garin, requires all national government agencies, government-owned and controlled corporations, state universities and colleges, and local government units to cut fuel use “by at least 10 percent.”
“In light of the recent global situation and the uncertainty in petroleum supply brought about by the ongoing conflict in the Middle East, the Department of Energy (DOE) is adopting a proactive and collective measure to safeguard the country’s energy security,” the directive stated.
Garin said government institutions must implement fuel-efficiency and conservation measures within their operations as oil prices are expected to rise.
“All government entities must strictly implement fuel efficiency and conservation practices within their offices and operations, including regular and preventive vehicle maintenance, a standardized vehicle monitoring system, and the full-tank method for accurate measurement of vehicle fuel efficiency,” she said.
“They are also required to implement optimized trip management, a phased transition to electric or hybrid vehicles, fuel-efficient driver behavior, and submission of monthly consumption reports,” she added.
The DOE said it will closely monitor compliance with the advisory. Its Energy Audit Team will also conduct energy audits and random spot checks among government offices to validate adherence to the directive.
Before the issuance of the order, President Marcos also appealed to the public to conserve energy and prepare for possible increases in petroleum prices amid the Middle East crisis.
“Our supply is sufficient. However, just in case, we may need to do this to reduce expenses, because prices are expected to go up,” the President said.
He likewise urged government officials to avoid unnecessary travel, practice carpooling, and maximize the use of public transportation. The President also encouraged motorists to ensure their private vehicles are fully occupied when traveling to help reduce fuel consumption. TRACY CABRERA