Emergency

It is what it is and at last, on the 25th day of war, President Marcos has come to his senses and called it as such – that we are, no doubt, in a state of energy emergency.

The government’s response has been painfully slow and inadequate, or at least that’s what we’re seeing. In fact, the government even refused to acknowledge that we are in the midst of an oil crisis.

But as everyone is experiencing now, the lingering crisis brought about by this insane war is real and it is not getting better.

One has the impression that Malacañang has been trying to downplay the impact of the war that the US and Israel have launched against Iran, perhaps to prevent panic-buying, hoarding or to avoid rattling the markets.

But denying the reality does not change it. The whole world is in crisis, the effects of which will be felt for years, even decades, to come. Here at home, the most visible impact is skyrocketing oil prices, and this has affected you, me and everyone we know.

Running on empty

Diesel is now at P119 to P138 per liter, gasoline at P97 to P100 per liter. The prices are bound to go up even more.

But that’s not the worst of it all. The bigger problem is when the pumps run dry, and that’s not far-fetched. When that happens, our economy will suffer, potentially worse than it did during the pandemic.

Travel will also be restricted.

President Marcos, in an interview with Bloomberg, said our planes may be grounded because of a jet fuel supply crunch.

“Several countries have already told our airlines they cannot fuel their aircraft, so they have to carry fuel there and back. Long haul is going to be a much more serious problem,” Marcos said.

Planes being grounded is a distinct possibility, he added.

Gokongwei-owned Cebu Pacific has already cancelled some flights beginning next month because of the surging fuel prices. Some of the routes affected include flights to Southeast Asian countries and to as far as Australia from Cebu, Davao, Clark, Iloilo and Manila.

Against this backdrop, the Marcos administration must implement drastic measures, beyond just declaring a state of emergency.

First, the government can impose cost-cutting measures. The bureaucracy can postpone some projects that are not exactly urgent. This can be done by reducing foreign and local trips, meetings and unnecessary gatherings.

The proposal to postpone the hosting of the ASEAN Summit in the Philippines this year makes sense. Raised by former finance secretary Gary Teves, the proposal has gained the support of some lawmakers, including Senate President Pro Tempore Panfilo Lacson.

“Former secretary Gary Teves’ proposal merits at least serious study and possible reconsideration. I think our ASEAN neighbors would understand,” Lacson said.

We really don’t need the extra expense – with a tab of P17 billion – not when we’re facing what could potentially be even worse than the 1973 oil crisis.

I hope this party-loving administration considers that proposal.

Speaking of parties, Malacañang must cut down on extravagant gatherings. Not this time – never mind that it is a fashion show by a Filipino designer, the launch of a coffee table book or some mundane excuse to party.

Second, President Marcos can learn from history, especially how the Philippines dealt with the oil crisis of the 1970s.

At the time, the government restricted gas consumption through coupons distributed in barangays. According to available data, motorists could only consume 10 liters of gasoline per month back then.

Fast forward to today. The Department of Energy insists we have enough supply for roughly 45 days. What happens after that? There is no assurance we can get more supply. That’s not energy security, that’s simply a countdown. And with the scorching summer heat around us, expect power plants to also require more oil.

In the energy industry, there are whispers that a fuel shortage may be a looming reality.

The country’s tycoons are getting restless, too. Nobody wants to say it out loud but since last week, some of them have been warning of empty barrels sooner rather than later.

As such, Marcos Jr. should be imposing measures to conserve supply aside from the work-from-home option. Rationing fuel may be done again, though not necessarily as drastic as in the 70s crisis.

The Marcos Sr. era also created the Philippine National Oil Co. to manage the crisis and stabilize supply at the time.

Today’s PNOC should also be working on medium- to long-term reforms such as efforts to stockpile oil.

We can learn from Japan which, like us, is also dependent on imported oil but holds the equivalent of 206 days’ worth of the product, according to the International Energy Agency. Other countries hold emergency oil supplies equal to at least 90 days of net imports.

Imagine that.

President Marcos must drop the apparent nonchalance or what seems like a lack of urgency.

We need a leader who will not deny there is a crisis but will confront it head-on with urgency, clarity and decisive action before the situation spirals beyond control.

Otherwise, he may end up like US president Herbert Hoover.

During the Great Depression, Hoover was increasingly mocked and blamed for the continued hardships because, for him, the solution was not government intervention but “rugged individualism,” according to an article in the BBC.

Many Americans ended up homeless and lived in shanty towns that came to be known as “Hoovervilles.”

Newspapers used as blankets were called “Hoover blankets.”

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