MANILA, Philippines — Households and businesses in the Meralco franchise area should brace for potential increases in their electricity bills this coming April 2026, as global oil and gas prices react to the escalating conflict between the United States, Israel, and Iran.
Lawrence Fernandez, Meralco vice president and head of utility economics, explained that while the conflict intensified in late February, the effect on electricity rates is not immediate.
- Timeline: March bills will remain stable, but the cost of fuel used for generation in March will likely be reflected in the April billing cycle.
- Variable Factors: The extent of the hike depends on how long the regional tensions persist. Meralco officials expressed hope that if the situation de-escalates quickly—as it did during a similar 12-day skirmish last year—prices might normalize before significant damage is done to consumer rates.
Meralco is particularly sensitive to global fuel prices because of its current energy sources:
- Natural Gas: ~60% of supply.
- Coal: 20% to 25% of supply.
- WESM/Renewables: Remaining ~15% to 20%. Because the Middle East is a primary supplier of natural gas, any supply constraint or price spike directly impacts Meralco’s generation costs. Chairman Manuel V. Pangilinan noted that the company is currently reassessing its fuel positions (LNG, coal, and diesel) to manage price volatility.
Pangilinan urged Filipinos to conserve energy to help ensure adequate supply during the crisis. Meanwhile, industry experts suggested that a government suspension of fuel excise taxes could provide a significant buffer, potentially lowering pump prices by ₱10 per liter and reducing the VAT component on energy.
Energy Secretary Sharon Garin noted that while only 3% of petroleum is used directly for electricity, indirect impacts—such as increased shipping costs for coal—are being closely monitored.
