Global oil markets are in turmoil since the US-Israel-Iran war erupted earlier this March. Brent crude oil futures have since skyrocketed by more than 56%.
The price shock in the Philippines has been so immediate and brutal that local gas stations are struggling to display the new rates. Most of their electronic price pylons were only built to flash double-digit peso figures.
But with fuel pump prices officially breaching the ₱100 mark as of March 17, stations have resorted to taping “1” stickers to reflect the sudden surge.
With gas prices now reaching three digits, some Filipino drivers and commuters online are now asking this burning question: Is it finally time to switch to an electric vehicle (EV)?
Energy Secretary Sharon Garin on March 16 announced massive oil price adjustments for the week of March 17 to 23. Gasoline prices would spike by ₱12.90 to ₱16 per liter, while kerosene is set to go up by ₱6.90 to ₱8.90 per liter.
But the hardest hit is diesel, which is expected to surge by ₱20.40 to ₱23.90 per liter.
This is due to the Philippines’ heavy reliance on imports, especially after Shell shut down its oil refinery in 2020 and converted it to an import terminal.
In 2023, the country imported over 8 billion liters of diesel, which consisted about 40% of total petroleum imports that year.
Since diesel is the lifeblood of the logistics and public utility vehicle (PUV) sectors, transport groups are already mounting calls for nationwide fare hikes and staging protests against the deregulated oil industry, which has left the country susceptible to volatile market conditions.
Oil companies such as Total, Shell, Seaoil, Petron, and Flying V are among the few who agreed to stagger their price increases over two to three days to soften the blow.
On March 17, the Senate approved on third and final reading a bill granting President Ferdinand Marcos Jr. emergency powers to suspend the excise tax on fuel products, which is expected to dampen the effects of the ongoing war in the Middle East.
But this solution is pushing consumers and transport operators to aggressively look for permanent alternatives, making the EV boom look less like a luxury and more like a necessity.
With fossil fuels becoming too expensive, EVs are slowly flooding the Philippine auto market.
Local sales volume for the Chinese EV giant BYD surged by a remarkable 446% compared to the previous year in 2025, according to a recent company report.
Meanwhile, Green and Smart Mobility (Green GSM) is aggressively rolling out its green electric taxi fleets across the country, with the backing of Vietnam-based Vingroup. It initially deployed 2,500 units in Metro Manila, while 500 are operating in Davao as of December 2025.
The Office of the Special Assistant to the President for Investment and Economic Affairs stated in 2025 that Green GSM’s investments will eventually reach $1 billion over the next three years. This will cover additional fleet units, personnel, office buildings, charging bays, and taxi garages.
Its launch marked the beginning of Green GSM’s first phase of operations in the country, which came with an investment of $500 million, the agency said.
Other Vingroup subsidiaries are also cementing their foothold to support this ecosystem.
VinFast extended its free EV charging program in the Philippines until 2029, while VinEnergo announced it will develop projects totaling 3.8 gigawatts with three renewable energy companies, “focusing on large-scale solar power projects in favorable areas” across the archipelago.
Smaller EV taxi players are also sprouting in the local scene, using either BYD or VinFast units for their fleets.
This rapid transition is heavily supported by Republic Act 11697, or the Electric Vehicle Industry Development Act (EVIDA). It mandates that corporate and government fleets must ensure at least five percent of their vehicles are electric, while also requiring dedicated EV parking slots and charging stations in buildings.
But is the Philippines actually ready for EVs to take over the transport sector?
While EVs do not use gas, they still need electricity. After all, the financial burden does not stop at the gas pump.
Energy Regulatory Commission chair Francis Saturnino Juan said on March 12 that Wholesale Electricity Spot Market (WESM) rates may increase by up to ₱4 per kilowatt-hour (kWh) based on preliminary estimates at the time.
Meralco also announced higher residential rates for March at ₱13.82 per kWh, linking the surge to higher transmission and generation charges.
Data from energy think tank Ember show that the Philippine power grid remains heavily reliant on fossil fuels.
In 2024, the country generated a total of 124.17 terawatt-hours (TWh) of electricity. Coal dominated this mix, generating 63.91% of the total power supply. Gas contributed 14.54%, while solar and wind trailed far behind at 1.68% and 1.21%, respectively.
Fossil fuels also emitted about 76.17 megatons of carbon dioxide in the same year, while renewables only emitted about 1.02 megatons.
So, plugging an EV into the current grid means the vehicle is practically running on coal.
But the government is trying to force a shift toward a cleaner power system.
To accelerate this transition, the Renewable Energy (RE) Act was designed to fast-track the exploration and development of RE resources towards the country’s energy independence.
To support this, the WESM now enforces a “must dispatch” policy for specific clean energy sources. This gives preference to intermittent RE-based plants such as wind, solar, run-of-river hydro, and ocean energy in the dispatch schedule whenever generation is available.
A “priority dispatch” is also given to other registered renewable plants like biomass, geothermal, and impounding hydro.
With this mechanism in place, grid operators must prioritize taking power from renewable sources before burning coal or gas. This ensures that clean energy does not go to waste.
“DOE is in the right direction with this new policy, which will boost the confidence of RE players in the country, especially at the local level,” Climate Reality Philippines Manager Nazrin Castro said.
Moving forward, experts argue that true energy independence requires democratizing power generation.
Small-scale renewable setups like residential rooftop solar offer a direct escape from volatile oil and electricity prices. To encourage this, renewable energy machinery and equipment are exempt from tariff duties and value-added tax (VAT) under the RE Law.
Other perks include a seven-year income tax holiday, a 10% corporate tax rate after the holiday, and VAT exemption on power generated from renewable sources.
But adoption remains heavily skewed toward big corporations.
Data from the Institute for Climate and Sustainable Cities show that the total estimated solar power capacity across all tracked areas is 3,093.32 megawatts (MW). Utility-scale solar farms account for a massive 81.07%. Residential rooftop solar only makes up 12.02%, while commercial setups account for the remaining 6.91%.
The numbers present a critical question for the youth inheriting this crisis. Are EVs the ultimate future of the transport sector, or is this just too lofty a goal for a country still shackled to imported dirty energy?
As calls for the government to address the worsening energy crisis grow louder, it remains to be seen if the Philippines will finally ditch oil for a rapid, genuinely clean energy transition. – fyt.ph
