Senator Win Gatchalian seeks to assess the potential impact of escalating political unrest in Iran on global oil prices and supply, aiming to safeguard the Philippines’ energy security.

Under Proposed Senate Resolution 278, Gatchalian noted that although the Philippines does not import Iranian crude due to sanctions, instability in Iran can still drive up global oil prices because the petroleum market operates as an interconnected global system where disruptions in one major producer elevate benchmark prices worldwide.

Increases in domestic prices over the past few weeks have been caused partly by geopolitical tensions in Iran. Another round of oil price hikes is expected on Tuesday. 

Sustained increases in oil prices significantly raise the cost of electricity generation, particularly in off-grid and missionary areas dependent on diesel-fed power plants deployed by the National Power Corporation-Small Power Utilities Group (NPC-SPUG), potentially resulting in higher generation costs and pressure for subsidies.

Gatchalian pointed out that the Philippines remains a net importer of petroleum and is highly exposed to fluctuations in global crude oil prices, particularly those originating in the Middle East, which supplies 96.8% of the country’s crude oil imports as of 2024, according to data from the Department of Energy.