The Philippines targets 50% reduction in oil dependence by 2040 under new plan

The Philippine government has introduced two energy policy frameworks designed to protect the country from international supply disruptions, while accelerating the transition to clean energy and domestic resources (Philippines Information Agency, 09/10/2026).

The government unveiled the 2026 National Oil and Gas Contingency Plan (NOGCP) and the Fuel Transition Plan (FTP). The two frameworks address energy security through complementary approaches: the NOGCP establishes emergency measures to shield domestic consumers from sudden international price increases and supply disruptions, while the FTP sets structural policy targets and investment priorities to progressively reduce dependence on imported oil over the next three decades.

The energy crisis triggered by the outbreak of war in the Middle East prompted the Philippine government to declare a national energy emergency in March 2026. According to the press release, the country remains highly vulnerable to global market volatility, with net imports accounting for 51.5% of total primary energy supply and oil representing 47.7% of final energy consumption. Approximately 90% of imported crude oil comes from three suppliers in the Middle East, while the transport sector accounts for 70% of total oil demand.

To address potential supply disruptions, tanker shortages and refinery bottlenecks, the NOGCP introduces a weekly, data-driven National Fuel Risk Index, featuring predefined thresholds to trigger rapid government intervention.

Alongside these emergency measures, the FTP outlines structural reductions in fossil fuel consumption relative to a 2022 baseline. 

• Under an ambitious decarbonization scenario, the Department of Energy (DOE) aims to reduce the country’s oil dependence by at least 30% by 2030, 50% by 2040 and more than 50% by 2050.
• To support this transition, the government aims for electric vehicles (EVs) to account for 25% of the national vehicle fleet by 2030 and 80% by 2040, backed by the deployment of at least 7,000 public charging stations by 2028. 
• The plan also calls for increasing the biodiesel blending mandate to 20% (B20), expanding ethanol use, and securing targets of 50% Sustainable Aviation Fuel (SAF) and 30% alternative marine fuel by 2050.

Under the Philippine Energy Plan, the country also aims to increase the share of renewables in its power generation mix to 35% by 2030, 50% by 2040 and more than 50% by 2050. Renewable energy sources accounted for more than 25% of national power generation in 2025.