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World Economy
Mar 28, 2026

Philippine transport workers rally over soaring fuel costs as President Marcos declares national energy emergency

AI Summary
Transport operators across the Philippines staged a two‑day strike demanding price controls as fuel prices hit near‑record levels. President Ferdinand Marcos Jr responded by declaring a year‑long national energy emergency and rolling out subsidies, but unions say the measures are insufficient and favor oil companies.

Jeepney driver Arturo Modelo of Manila says his daily earnings have collapsed to roughly one‑third of the usual 600 pesos after fuel costs surged, leaving him unable even to afford his child’s lunch money.

Modelo joined a two‑day transport strike on Thursday and Friday, hoping to make a “deaf government” listen to the plight of drivers who can no longer earn a living on the road.

The iconic jeepney, born from repurposed U.S. military vehicles after World War II, remains the most affordable commuter option in the Philippines, yet its operators are now bearing the brunt of a global oil shock.

Last week, jeepney owners walked out, and this week the protest expanded to include bus, taxi, minibus and motorcycle‑taxi drivers. Nearly a dozen national transport groups marched to the Presidential Palace demanding price caps on petrol and diesel, the removal of fuel taxes, and stricter regulation of the oil sector.

Organised under the No to Oil Price Hike Coalition, the demonstrators also blamed “American aggression” against Iran for the domestic economic distress, with union chair Jerome Adonis likening the impact to “a bomb dropped on us”.

In response, President Ferdinand Marcos Jr declared a national energy emergency on Tuesday night – the first such declaration in the country’s history. The emergency, set to last one year, grants the government powers to accelerate fuel procurement, curb hoarding and curb profiteering.

Fuel prices remain among the highest in Southeast Asia: diesel is now about $2.3 per litre and petrol close to $2 per litre in the Philippines, versus $2.7 and $2.35 respectively in Singapore, while Malaysia, Vietnam and Thailand report roughly half those prices.

To alleviate the burden, the administration has introduced a 5,000‑peso ($83) subsidy for motorcycle‑taxi drivers and other public‑transport workers, and disbursed 2.5 billion pesos (≈$414 million) in fuel subsidies to roughly 300,000 transport employees. Unions claim the sector employs about two million people, leaving many without aid.

During the strike, picket lines appeared at 85 commuter terminals, and jeepneys were scarce on Manila’s usually congested streets. Authorities, however, argued that the action did not cripple the city’s transport network.

Union leader Mody Floranda of the Piston group accused President Marcos of favouring oil companies, saying the president could issue an executive order to cap prices but has yet to act decisively.

Energy officials note that 98 % of the Philippines’ crude oil is imported and that the country’s high 12 % value‑added tax, excise duties and a deregulated market – shaped by the Oil Industry Deregulation Law of 1998 – amplify price volatility. Professor Krista Yu of De La Salle University highlighted the nation’s limited refining capacity as a structural weakness.

Chief economist Emmanuel Leyco warned that the law allowing industry‑driven price adjustments “is the main culprit”, especially as “half the population is poor”.

Amid mounting pressure, Marcos signed legislation permitting the temporary suspension of fuel excise taxes when crude oil prices exceed a set threshold. Opposition lawmaker Renee Co urged that the 12 % VAT also be removed, calling both taxes “regressive” burdens on ordinary Filipinos.

Co and other lawmakers have also filed a resolution demanding an immediate end to the U.S.‑Israel‑Iran conflict, linking regional geopolitics to the domestic fuel crisis.