MANILA, Philippines — With international diplomatic breakthroughs offering a potential exit ramp from a bruising domestic crisis, economic managers are plotting the end of the state’s emergency energy footing. The Department of Energy (DOE) announced that the government may lift the state of national energy emergency in the third quarter of this year, provided global oil supply chains and retail pricing metrics continue to stabilize.
Energy Secretary Sharon Garin clarified in a radio interview that while peace talks in the Middle East have yielded immense structural optimism, Malacañang is pacing its response to safeguard domestic consumers.
President Ferdinand Marcos Jr. originally declared the state of national energy emergency under Executive Order No. 110 on March 24, 2026, after joint military actions in the Middle East heavily disrupted the Strait of Hormuz chokepoint, sending local diesel skyrocketing past ₱130 per liter.
While the emergency status carried a built-in baseline period of one year, the DOE is confident that an early termination is viable if international crude drops hold:
[ THE ENERGY EMERGENCY TERMINATION PLAN ]
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[ THE TWO-TO-THREE MONTH BUFFER ] [ THE BASELINE FOR LIFTING ]
• **Lingering Price Echoes:** Garin explained that the agency is • **Stability Over Low Costs:** The decision to recommend lifting
withholding an immediate repeal recommendation because consumer • the status hinges entirely on market predictability. *“Prices may
goods and commodity values remain warped by the oil spike. • not necessarily go down, but at least they should stabilize,”*
• **Easing the Friction:** *“The effects of this crisis on us aren't• Garin pointed out.
over yet... I think, give or take, maybe another two or three • **Presidential Prerogative:** Ultimately, the final administrative
months [are needed],”* the Energy Chief summarized. • decree rests solely with President Marcos, not the DOE alone.
The potential third-quarter wind-down marks a massive turning point for the domestic economy, which has taken heavy industrial damage since the geopolitical shock first rippled across the Pacific:
[ THE 2026 ENERGY CRISIS IMPACT PROFILE ]
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[ 1. Retail Disruption ] ──► At the height of the supply squeeze, severe fuel shortages and dry-spells
forced the temporary closure of over 400 monitored gas stations nationwide.
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[ 2. State Capital Inflow ]──► The administration was forced to activate sweeping emergency protocols,
including releasing **₱20 billion** from the Malampaya gas fund to the state-owned
PNOC Exploration Corp. to physically source safety fuel shipments from Malaysia.
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[ 3. Tax Relief Cushion ] ──► Malacañang utilized emergency legislative powers under RA 12316 to completely
suspend or slash excise taxes on household necessities like LPG and kerosene.
The macroeconomic optimism driving the DOE’s updated timeline is anchored on the upcoming final signature of a peace treaty between the United States and Iran, scheduled to take place in Switzerland on Friday, June 19, 2026.
The news has already triggered a highly positive economic chain reaction across the capital—causing the Philippine Peso to appreciate back down to the ₱60-to-$1 baseline and sparking a massive 6.14% surge on the local stock exchange floor earlier this week. However, until supply lines flowing through the Middle East are physically restored and local pump prices drop back smoothly to pre-crisis targets, the DOE urges motorists to remain prudent as the final phases of emergency market intervention play out.
