How the Philippines fares against ASEAN in oil crises

The Philippines faces global oil shocks such as due to the recent conflict between US-Israel and Iran with fewer buffers than many of its Southeast Asian peers.

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“Medyo dehado po tayo,” said Institute for Climate and Sustainable Cities energy transition adviser Alberto Dalusong III in an interview Monday, April 6, on ANC’s “Headstart.” (We’re in a bit of a disadvantage.)

The Philippines imports nearly all of its crude, has limited refining capacity, and depends heavily on fuel flows tied to the Middle East. That combination makes it a clearer “price taker” compared with neighbors that have stronger supply cushions or infrastructure.

“If we look at it, our brothers in ASEAN are better off because of their own indigenous supply,” Dalusong said, partly in Filipino.

Indonesia has stronger buffers due to its domestic oil and gas resources, but it is not insulated. It still imports 37% of its liquid natural gas and petroleum gas from Gulf countries. While it is better positioned than the Philippines with oil and gas reserves, such import dependence and growing subsidy costs mean Jakarta is still struggling due to significant fiscal pressure during oil price spikes.