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Brix Lelis - The Philippine Star
March 16, 2026 | 12:00am
Fisherfolk hold a protest in the waters of Batangas City on April 22, Earth Day to denounce the expansion of fossil gas plants and liquefied natural gas (LNG) terminal in the area.
Mara Manuel for Center for Energy, Ecology and Development
MANILA, Philippines — As higher electricity rates loom amid the global oil crisis, the country should tap more of its indigenous natural gas to keep power costs steady, the Petroleum Association of the Philippines said.
PAP chairperson Donnabel Kuizon Cruz said locally produced gas could reduce the country’s heavy reliance on highly volatile imported fuel and provide additional savings to consumers.
“We still have capacity there that we can use and push into our power generation companies so we can help reduce the price,” said Cruz, who also serves as president and CEO of Razon-led Prime Energy Resources Development B.V.
Prime Energy is the operator of Service Contract 38 governing the Malampaya deep water gas-to-power project, the Philippines’ first and only indigenous gas field offshore Palawan.
Cruz said electricity generated from Malampaya gas costs about P4.80 per kilowatt-hour, way below the P10.30 per kWh charged for imported liquefied natural gas.
“That’s how big the difference between our own fuel in the country is compared to imported gas today,” she stressed.
The PAP official also underscored the need to strengthen the country’s local fuel supply amid uncertainties from the US-Israel war with Iran, which have triggered double-digit spikes at domestic pumps.
“The Iran conflict underscores the importance of having our own resources – our own indigenous or domestic fuel sources such as indigenous gas, oil and coal,” Cruz noted.
Last week, the Philippines saw the largest jump so far in fuel prices, with gasoline rising by P7 to P13 per liter, diesel by P17.50 to P24.25 and kerosene by P32 to P38.50.
Oil companies are expected to roll out another round of double-digit price hikes this week.
The Energy Regulatory Commission has flagged the possibility of a spike in electricity prices at the spot market due to the combined impact of the Iran crisis and higher summer demand.
As such, the PAP is pushing for the full implementation of the Philippine Natural Gas Industry Development Act, which prioritizes the use of indigenous over imported natural gas, to protect consumers from global shockwaves.
