Philippines wants diesel phase-down for 30% oil cut by 2030

The Philippines is looking to reduce its dependence on costly diesel-powered systems across industries, farms, and island communities under an aggressive plan to slash the country’s overall oil reliance by at least 30 percent by 2030.

Speaking at the Philippine Energy Investment Forum on Thursday, Energy Secretary Sharon S. Garin said the government is pushing for wider electrification, renewable energy, battery storage, and more efficient technologies to reduce petroleum consumption and shield consumers and businesses from volatile global oil prices.

Under the Department of Energy’s (DOE) Fuel Transition Plan, the government targets a reduction in oil dependence of at least 30 percent by 2030, 50 percent by 2040, and more than half by 2050 under its aggressive scenario.

A more conservative scenario targets a reduction of at least 15 percent by 2030 and 35 percent by 2050, using 2022 as the reference year.

“This gives us a coordinated approach to the years ahead. One strengthens our ability to manage fuel disruptions under present conditions. The other guides the investments and technologies that will progressively reduce our exposure to those disruptions,” Garin said.

Oil accounts for 47.7 percent of the country’s final energy consumption, with around 90 percent of crude oil imports sourced from the Middle East.

Under the plan, the DOE will push to reduce diesel consumption in island communities through renewable energy and storage systems, while encouraging industries and farms to adopt electrification and more efficient technologies.

Transportation, which accounts for roughly 70 percent of domestic oil demand, is another major focus.

The government is targeting electric vehicles to account for 25 percent of the national vehicle fleet by 2030, supported by at least 7,000 charging stations nationwide by 2028.

The DOE is also pursuing higher biofuel blends, including increasing biodiesel toward 20 percent and expanding ethanol use.

Alongside the transition plan, Garin unveiled the National Oil and Gas Contingency Plan, which includes a proposed strategic petroleum reserve targeting 60 days and eventually 90 days of fuel supply.