High energy costs still haunt PH, Southeast Asia neighbors

FILE/STOCK

MANILA, Philippines — Households in the Philippines and in neighboring countries continue to face significant pressure from elevated energy costs, the International Energy Agency (IEA) said in its latest Southeast Asia Energy Outlook.

The IEA said Southeast Asia is a critical driver of global energy trends with the region’s growth in demand projected to hit 20 percent to 25 percent of global energy through 2035, because of rapid economic expansion, industrialization and rising living standards.

Article continues after this advertisement

But it identified significant vulnerabilities in the region’s energy security, noting a heavy reliance on fossil fuel imports, with the Middle East supplying 60 percent of crude oil.

FEATURED STORIES

BUSINESS

BUSINESS

BUSINESS

Geopolitical disruptions were also seen as structural weaknesses as shown by the conflict in the Strait of Hormuz which pushed the energy import bill to a projected $185 billion in 2026.

READ: Explainer: What’s driving the latest spike in electricity prices

The IEA acknowledged the “rapid progress” in expanding access to electricity and clean cooking in Southeast Asia over the past two decades, but some countries are still problematic.

Myanmar and the Philippines continue to lag, with 16 million and 5 million people, respectively, still underserved.

Article continues after this advertisement

On clean cooking, access rate in the Philippines only stood at 64 percent, the report showed. Liquefied petroleum gas (LPG) is the region’s top clean cooking fuel, the IEA said.

Beyond access, the IEA said affordability remains an issue.

Article continues after this advertisement

READ: IEA chief warns of tougher month for energy markets

Between 2019 and 2024, it said that residential energy expenditure per capita climbed by about 12 percent on average in Singapore, Thailand, the Philippines, Vietnam and Indonesia.

Affordability issue

“In the crisis, households have faced rising energy bills, especially those who are reliant on transport fuels for their daily commutes,” the report read.

It also noted that six weeks after the Middle East war erupted in February, diesel prices ballooned in Thailand, Singapore, Malaysia, Vietnam, and the Philippines—with the latter suffering a massive 140-percent jump in prices.

In March, the country even saw LPG prices hit a historic high following a P30 increase per kilogram, pushing the prices to as much as P1,465 per cylinder in Metro Manila.

The IEA also pointed out that low-income households spend 16 percent of their income on energy, bigger than those in the median-income and high-income segments.

“Despite this, low-income households consume only about half as much energy as high-income households and one-third less than median-income households,” it said.

“When energy costs rise, low-income households often cut back on energy consumption, limiting their ability to meet basic energy needs such as cooling and cooking,” it added.

The situation could also force low-income households to set aside other essentials, such as healthcare and food.

Your subscription could not be saved. Please try again.

Your subscription has been successful.

Pushing for more renewable energy assets and improving energy efficiency, coupled with reliable transportation facilities, would help consumers save on energy bills, the IEA said. /cb