Energy Secretary Sharon Garin said the Philippines has secured “safe and preferential access” through the Strait of Hormuz, a move aimed at reducing supply risks amid rising global tensions, but one that will not immediately lower pump prices.
“What we have secured is safe and preferential access, but this will not immediately bring down fuel prices, nor resolve our long-term structural energy challenges,” Garin said in a Facebook post late Saturday.
The Department of Energy framed the arrangement as a risk management measure designed to ensure supply continuity and stability, particularly as any disruption in the Hormuz corridor could ripple across global oil markets.
“This is risk management. In a time of global tension, risk reduction is already a meaningful gain,” Garin said, stressing that uninterrupted flows are critical to shielding the domestic economy from external shocks.
While much of the Philippines’ fuel imports arrive via regional hubs such as Singapore and South Korea, Garin noted that the crude supplying these hubs often transits through Hormuz. Any disruption there could trigger a domino effect on global supply—and ultimately on local pump prices.
The deal is expected to lower the risk of supply disruptions, strengthen protection for Philippine-linked cargo, and enhance safety conditions for Filipino seafarers.
Still, Garin emphasized that the agreement is not a “perfect solution” and does not eliminate all risks, underscoring the need to address structural issues in the country’s energy sector.
“But what this does is help ensure continuity of supply and stability, especially at a time when further disruptions could significantly affect our economy and our people,” she said.
