The Philippines, heavily reliant on imported fuel, has seen costs surge to historic highs — as much as P140 per liter for diesel — after the US-Israeli war on Iran disrupted flows through the Strait of Hormuz.
President Ferdinand Marcos Jr. said the government is casting a wide net for fuel sources, with current reserves projected to last only 45 days.
“We have not only gone to our traditional oil suppliers; we have tried to explore other sources that are not affected by the war ongoing in the Middle East,” he said. “Nothing is off the table. We are looking at everything — everything that we can do.”
The United States has eased some restrictions on Russian crude sales, allowing purchases of oil already at sea until 11 April.
As this developed, China signaled an openness to a truce with the Philippines to resume the stalled talks on joint energy development, notwithstanding the dispute over the sea to be explored.
‘Not new’
“Setting aside differences and pursuing joint development is the right path to uphold peace and stability in the South China Sea and deliver benefits to countries in the region and their peoples,” the Chinese Embassy in Manila said late Wednesday.
The statement followed Marcos’ interview with Bloomberg, where he said the US-Israel conflict with Iran could provide the “impetus” for Manila and Beijing to revisit a joint exploration in the disputed waters to bring up the oil known to be underneath.
The embassy said both sides had previously conducted “in-depth discussions” on a joint oil and gas development and had achieved “positive progress.”
Foreign Affairs Secretary Maria Theresa Lazaro said the proposal was not new and had long been on the table, though tensions in the West Philippine Sea had hampered any progress.
Not a quick solution
Senator JV Ejercito, however, expressed reservations, saying that even if a joint deal pushes through, it would not provide an immediate solution, noting that oil extraction would take three to five years.
Marcos’s remarks signaled a potential easing of bilateral tensions that have soured since he assumed office in 2022, further aggravated by recent exchanges between Philippine senators and Chinese officials.
Forthcoming?
Despite strained ties, the President said he is open to revisiting the oil talks, notwithstanding a 2023 Supreme Court ruling declaring such exploration “unconstitutional.”
The ruling stemmed from the 2005 Joint Marine Seismic Undertaking among the Philippines, China and Vietnam, which covered some 142,886 square kilometers, much of it within the Philippines’ 200-nautical-mile exclusive economic zone.
The Supreme Court ruled the JMSU unconstitutional for allowing wholly foreign-owned corporations to participate in the exploration of Philippine natural resources, in violation of Section 2, Article XII of the Constitution, which requires full state control and supervision.
The High Court sided with the petitioners led by former progressive representatives, finding that the arrangement effectively allowed foreign entities to undertake large-scale exploration of Philippine petroleum resources.
