Imported Fuel Dependence Emerges As Top Concern For Philippine Business Leaders
- June 22, 2026
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A growing number of Filipino business leaders are considering moving operations overseas amid concerns over the country’s heavy dependence on imported fossil fuels, with executives urging the government to accelerate the shift toward renewable energy and electrification to strengthen energy security and economic competitiveness.
A global survey commissioned by E3G, the We Mean Business Coalition, and the Global Renewables Alliance found that 92 percent of respondents from the Philippines believe the country is overly reliant on imported fossil fuels, the highest level recorded among the 18 countries included in the study.
The survey, conducted in late April among nearly 2,000 executives from medium-sized and large companies worldwide, highlighted mounting concerns over the vulnerability of Philippine businesses to global energy market disruptions and geopolitical tensions.
78 percent of Filipino business leaders said they would consider relocating operations abroad if government support for electrification remains inadequate, making reliable and affordable energy supplies a major factor in business decision-making.
Energy Security Concerns
The findings come as the Philippines continues to grapple with the risks associated with its dependence on imported fuel.
The country sources the vast majority of its crude oil requirements from the Middle East, making it highly exposed to supply disruptions and price volatility arising from regional conflicts.
Business leaders pointed to recent geopolitical tensions, including disruptions involving the strategic Strait of Hormuz, as evidence of how global events can quickly affect domestic energy costs.
The Strait of Hormuz serves as one of the world’s most critical energy shipping routes, carrying a significant portion of global oil and gas supplies. Disruptions in the waterway have contributed to higher fuel prices and increased uncertainty in energy markets, effects that have filtered through to businesses and consumers alike.
While oil is used more extensively in transportation than in electricity generation, rising fuel prices have also affected the cost of other imported energy sources such as coal and liquefied natural gas, adding pressure on power prices and operating expenses.
The survey found that businesses and households are already bearing the economic consequences of the country’s dependence on imported fossil fuels through elevated energy costs and increased exposure to global market shocks.
Faster Electrification Urged
“Prompted by the volatility in energy prices caused by the recent rise in geopolitical uncertainty, business leaders would welcome a quicker switch to domestically sourced renewables-based electricity,” the survey report said.
Respondents viewed clean electrification as a means of reducing exposure to fossil fuel price swings while improving energy security, boosting competitiveness, supporting economic growth, and contributing to climate goals.
The transition would involve wider adoption of electric vehicles, replacement of fossil fuel-powered industrial equipment with electric technologies, and increased use of renewable energy sources such as solar, wind, and hydropower.
Dutch Climate and Green Growth Minister Stientje van Veldhoven said the findings reflected a clear message from the business community.
“In a world of fossil fuel volatility, clean electrification is the smart choice for energy security, competitiveness and growth,” she said in a statement.
Policy Gaps
Despite broad support for electrification, many executives believe government action has not kept pace with business needs.
The survey found that 89 percent of Filipino respondents think current policies are moving too slowly to provide the level of electrification support required by companies.
Nearly half of the respondents identified public grants and subsidies as among the most effective measures for accelerating the transition.
Participants in the survey included chief executives, vice presidents, directors, senior managers, and other business leaders from companies generating at least $1 million in annual revenue.
Renewable Energy Targets
The Philippine government has set ambitious goals to reduce dependence on imported fossil fuels and increase the share of renewable energy in the country’s power mix.
Under the Philippine Energy Plan, renewable energy is targeted to account for 35 percent of electricity generation by 2030 and 50 percent by 2040, up from about 25 percent currently. The Department of Energy is also pursuing broader fuel transition initiatives, including targets for electric vehicles to comprise 60 percent of the national vehicle fleet by 2040 and 80 percent by 2050.
However, coal remains the dominant source of electricity generation in the country. Government data show coal imports have steadily increased in recent years, rising from 28.861 million metric tons in 2020 to 39.872 million metric tons in 2024.
While business leaders see opportunities emerging from low-carbon manufacturing and cleaner energy technologies, the survey suggests many companies remain concerned that the pace of the country’s energy transition may not be fast enough to shield them from future energy shocks.
Source:
https://business.inquirer.net/595647/energy-concerns-may-drive-executives-out-of-ph
