Manela, March 16 (QNA) - The Philippines stressed that it is very critical for nations to adhere to existing contracts for the supply of oil and energy, warning that disruptions in exports could exacerbate the global energy crisis amid the mounting conflict in the Middle East, at a time when Manila is working to strengthen its energy security, secure fuel supplies, and diversify its sources.

Philippine Energy Secretary Sharon Garin said Monday that her country is holding talks with Indonesia and Russia as part of ongoing efforts to ensure the stability of supplies.

She noted that energy officials and diplomats have engaged with countries supplying fuel to the Philippines to guarantee continued compliance with long-term agreements, which include China, South Korea, Singapore, Thailand, and Japan.

Supply chain reliability has become a national security matter for energy-importing countries like the Philippines, as signed commercial pacts must be respected even in times of crises, Garin noted.

Garin further clarified that her country is currently engaging with Indonesia to import coal to ensure the stability of electricity supplies, indicating that Indonesia is the Philippines’ main supplier of coal, which is used to generate over half of the country’s electricity production.

These remarks came at a time when global oil prices spiked above USD 100 per barrel, while international shipping routes are unprecedentedly choked off, as the conflict in the Middle East enters its third week, causing interruption of oil and gas supplies through the Strait of Hormuz.

On the heels of these developments, economic pressures on the Philippines are mounting, as the local currency plunged to a level approaching its lowest point at almost 60 pesos per dollar, prompting the central bank to intervene in the foreign exchange market.

In parallel, the Philippine House of Representatives granted President Ferdinand Marcos Jr. the carte blanche to temporarily suspend or reduce excise taxes on fuel in a move to contain the sharp spike in prices and curb inflationary pressures in an economy that is heavily dependent on consumption.

Under this measure, the President can reduce or suspend the collection of excise taxes on petroleum products for up to six months, based on the recommendation of a Joint Government Committee on Budget, as long as the total suspension period doesn't exceed one full year.

The measure is enforced at a time when governments in Southeast Asia embarked on measures to mitigate the economic fallout arising from Middle East tensions, through crafting policies that aim to rationalize power and preserve domestic market stability as part of endeavors to ensure energy security, while turmoil persists in global markets. (QNA)