Philippines aims to cut oil dependence by 50% by 2040
October 7, 2026 | 10:04 pm By Sheldeen Joy Talavera, Reporter THE PHILIPPINES is aiming to halve its dependence on oil by 2040 as part of efforts to reduce reliance on imported fuel, a top Department of...
October 7, 2026 | 10:04 pm By Sheldeen Joy Talavera, Reporter THE PHILIPPINES is aiming to halve its dependence on oil by 2040 as part of efforts to reduce reliance on imported fuel, a top Department of Energy (DoE) of f icial said. “Our Fuel Transition Plan sets a 50% reduction in oil dependence by 2040,” Energy Secretary Sharon S.
Garin said in a keynote address at the joint opening ceremony of the 44 th Association of Southeast Asian Nations (ASEAN) Ministers on Energy Meeting and the ASEAN Energy Business Forum on Wednesday. Under the Fuel Transition Plan, the DoE aims to cut the country’s oil dependence by at least 30% by 2030, around 50% by 2040, and more than 50% by 2050.
The plan aims to achieve this by accelerating electric vehicle (EV) adoption, with EVs accounting for 80% of vehicles from 2040 to 2050, alongside greater use of high-blend biofuels, expanded and electrified railways, hydrogen fuel cell vehicles for heavy transport, sustainable aviation fuels and alternative maritime fuels.
“The Philippines cannot influence the movement of oil prices on global markets, nor can it eliminate the geopolitical risks that threaten the routes through which its oil supply flows,” the plan said. “However, what it can control is its exposure, through stronger reserves, an accelerated transition to alternative fuels and technologies, and the governance architecture to make these changes durable across administrations,” it added.
The Philippines is a major importer of petroleum products, sourcing about 98% of the country’s crude oil from the Middle East, making it vulnerable to price swings due to global supply disruptions. In 2025, oil accounted for 47.7% of the total final energy consumption, with the transport sector making up 70% of national oil demand, DoE data showed.
Continue reading
Watch a short ad to unlock the full article
The rest stays locked if you skip or close the ad early.
Ms. Garin said the country’s goal to reduce oil dependence supports broader efforts of the ASEAN to strengthen collective energy resilience and manage critical oil and gas supply disruptions under the ASEAN Framework Agreement on Petroleum Security. The Philippines’ chairmanship of ASEAN comes as the region seeks to strengthen energy security amid volatile global fuel markets, supply disruptions and the accelerating shift toward cleaner energy.
“The global energy crisis has asked a great deal of every ASEAN nation this year. Prices shifted quickly. Shipping routes changed.
Governments made decisions in days that would ordinarily take months,” she said. Ms. Garin said ASEAN energy ministers are looking to strengthen the region’s ability to withstand external shocks while making greater use of energy resources.
“No country can insulate itself entirely from global events. But ASEAN can become more capable of absorbing shocks, supporting one another when they come, and relying more confidently on the resources and capabilities within our own region,” she said. Citing a report from the ASEAN Centre for Energy, Ms.
Garin said the region’s energy demand is projected to be more than twice its 2022 level. Southeast Asian countries will also require around $200 billion in annual energy investment by 2030. Edgar Benedict C.
Cutiongco, president of the Philippine Petroleum Association (PPA), said the Philippines is moving towards energy independence with the development in the upstream sector. “The PPA, which represents the country’s upstream oil and gas industry, welcomed a record year in exploration and production.
The industry sees this as a clear step toward energy independence,” Mr. Cutiongco said. He said the DoE has signed more than petroleum service contracts in 12 months than in any period in history, including the world’s first natural hydrogen bid round.
“PPA will keep working with the government to sustain this momentum, cut reliance on imported fuel and secure the country’s energy future,” he said.
Article text via FreeNewsAPI. Rights remain with BusinessWorld Online.
Read on publisher site → Opens BusinessWorld Online in a new tab
