The Philippines has emerged as one of the most proactive economies in cushioning the impact of surging global oil prices, earning recognition from the Asian Development Bank (ADB) for rolling out a wide-ranging and coordinated response to the energy-driven economic shock triggered by tensions in the Middle East.
In its April 2026 report, “The Impact of the Middle East Conflict on Asia and the Pacific,” the ADB noted that the country implemented measures across seven of eight key policy areas, placing it among the most comprehensive responders out of 44 developing economies studied.
The report also downgraded growth projections for the region to 4.7 percent and forecast inflation to rise to 5.2 percent, largely due to disruptions in global energy supply chains.
According to the ADB, the Philippines’ response spanned multiple fronts, including fuel subsidies, targeted financial assistance, staggered oil price adjustments, demand management, supply-side interventions, and efforts to diversify energy sources. Only one other country, India, matched the Philippines in pursuing fuel diversification strategies.
Central to the government’s approach was the United Package for Livelihoods, Industry, Food, and Transport (UPLIFT), a whole-of-government framework institutionalized under Executive Order No. 110 by President Ferdinand Marcos Jr.. The order declared a state of national energy emergency, enabling agencies to coordinate fiscal, social protection, and energy-related interventions.
Through UPLIFT, key sectors such as energy, transportation, agriculture, finance, and social welfare were aligned to stabilize supply, maintain economic activity, and shield vulnerable groups from rising costs.
Among the major initiatives were fuel subsidies benefiting nearly one million public utility vehicle drivers, along with targeted aid for farmers and fisherfolk. The government also expanded its cash transfer programs, reaching more than four million low-income households affected by inflation.
Authorities complemented these efforts with supply-side measures, including sourcing alternative fuel supplies and accelerating renewable energy development. Monetary policy actions from the Bangko Sentral ng Pilipinas also played a role in managing inflationary pressures.
While warning that global uncertainties persist, the ADB said the Philippines’ swift and multi-pronged strategy helped blunt the worst effects of the oil shock, highlighting the country’s resilience in navigating external economic challenges.