Meralco Reviews Fuel Supply As Middle East Conflict Threatens Power Price Stability
- March 6, 2026
Table of Contents
Manila Electric Co. (Meralco) said it is reviewing its fuel supply exposure and monitoring global energy prices as escalating tensions in the Middle East push oil and other commodity prices higher. Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said the company has begun evaluating its current fuel position to determine how rising global energy costs could affect electricity prices in the coming months.
The review follows a sharp escalation in hostilities in the Middle East that has contributed to higher oil prices and renewed concerns about global fuel supply stability. “Meralco will review its current fuel position—especially LNG, the likely impact on the price of coal, the price of diesel—as these may affect power prices,” Pangilinan said.
He added that the company aims to maintain a sufficient electricity supply while managing potential price volatility. “We want to ensure adequate power supply and manage price volatility as responsibly as possible. I have made it clear to the team that we must help protect consumers as the cost of goods rises globally,” Pangilinan said.
Energy Conservation
Pangilinan also called on consumers to remain mindful of electricity usage as the situation in the Middle East continues to evolve.
“It would also help if we’re mindful of our electricity consumption as the war in the Middle East continues,” he said. “We import much of the fuel used to generate power—we can all help ensure enough power to get through the next few weeks if we conserve.”
The Philippines relies heavily on imported fuels for power generation, including coal and LNG, making electricity costs sensitive to global commodity price movements.
March Electricity Rates Unaffected
Despite the uncertainty, Meralco officials said the conflict has not yet affected electricity prices for the March billing cycle. Meralco Head of Utility Economics Larry Fernandez said price movements in global fuel markets typically take time to be reflected in power generation costs and electricity bills.
“What is happening now in the Middle East has no effect yet on March prices. The very least that we may see an effect is in April,” Fernandez said. He noted that while Qatar is the world’s largest supplier of LNG, the Philippines primarily sources its LNG requirements from Malaysia and Australia, which are geographically distant from the conflict zone.
“Supply will be there,” Fernandez said. “What we are monitoring is the price of energy commodities. The price will really depend on how long the situation will persist.”
Government Monitoring Fuel Supply
The Department of Energy (DOE) said it is also preparing measures to mitigate the possible impact of the conflict on the Philippines’ energy supply.
According to the agency, the country currently has adequate fuel inventories, with supply levels about three times higher than the minimum required for companies to maintain operations for 15 days.
Meralco earlier increased electricity rates in February by 22.26 centavos per kilowatt-hour (kWh), bringing the overall rate for a typical household to ₱13.1734 per kWh. The adjustment translated to an increase of about ₱45 for residential customers consuming 200 kWh.
The company is the country’s largest private electric distribution utility, serving 39 cities and 72 municipalities. Its franchise area covers Metro Manila as well as parts of Bulacan, Cavite, Rizal, Batangas, Laguna, Pampanga, and Quezon.
Source:
https://businessmirror.com.ph/2026/03/05/meralco-reviews-fuel-supply-status-amid-war
https://business.inquirer.net/573355/meralco-rates-rise-by-22-centavos-per-kwh-in-february-billing
