The Makati Business Club has expressed support for the government’s declaration of a national energy emergency, urging policymakers to use the crisis as a turning point for long-delayed structural reforms rather than rely on broad subsidies.

The group said the declaration highlights the country’s exposure to global oil volatility and could help accelerate coordinated responses across key sectors, including transport, agriculture, and manufacturing.

Address inefficiencies

It added that the situation should push the government to address inefficiencies that continue to drive up costs in the economy.

“The declaration can help mobilize resources, streamline responses, and bring into sharper focus longstanding structural issues in the country’s energy sector,” the group said.

While recognizing the immediate burden of high fuel prices, the business group cautioned against suspending fuel excise taxes, arguing that such a move could weaken the government’s ability to fund targeted assistance programs.

“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,” it said.

Direct support to vulnerable sectors

Instead, the organization emphasized directing support to vulnerable sectors such as farmers, fisherfolk, and public utility drivers, rather than implementing across-the-board relief measures.

Beyond short-term responses, the group called for faster rollout of infrastructure projects that could lower logistics and food costs, including cold storage facilities and port upgrades.

It also proposed leveraging technology to improve supply chain efficiency, citing the potential of a centralized digital platform that could match unused trucking capacity with delivery needs.

“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 is our best bet at securing it,” the group said.

Stable, predictable policies to sustain investor confidence

The business community also underscored the need for stable and predictable policies to sustain investor confidence, noting that reforms in the energy and logistics sectors would require sustained funding and coordination between government and private stakeholders.

As global uncertainties persist, the group said the current energy situation presents an opportunity to implement reforms that could strengthen the country’s long-term economic resilience.