Lifestyle change seen if oil reaches $200/barrel

MANILA, Philippines — Filipinos will need to change their lifestyles if global oil prices go up to $200 per barrel, Energy Secretary Sharon Garin said, as the idea no longer seemed far-fetched three weeks into the Middle East war.

Asked on Thursday what would happen if international benchmark Brent Crude breaches the $200/barrel mark, Garin said it’s time to be less dependent on fuel and start “electrifying everything.”

“We have to change our lifestyle, I think,” the energy chief told ANC, pointing out that she herself has been using electric vehicles since the conflict erupted on Feb. 28 because of rising fuel costs.

Garin said the Philippines is facing a national problem: fuel supply will become unpredictable in the coming months if Iran continues to block the Strait of Hormuz, a narrow waterway through which one-fifth of the world’s oil passes.

“Worst case really is we won’t have enough, or we won’t have any… that’s why I’m laser-focused not to run dry because we need to have oil in this country for the economy to grow,” she said.

Garin is asking Filipinos to conserve energy – a “small sacrifice,” as she puts it – even if fuel supply remains stable until the end of April.

“If possible, don’t use cars if it’s not necessary,” she said, promoting carpooling and work-from-home setups. “If you don’t need anything at the mall, just stay at home.”

The Philippines’ daily oil consumption returned to pre-pandemic levels in 2024, according to the Energy Institute’s “Statistical Review of World Energy,” hitting 486,600 barrels per day.

Consumption grew at an average annual rate of 3.7 percent between 2014 and 2024, surpassing that of Malaysia, Singapore and South Korea.

Asia, which sources most of its energy supplies from the Middle East, has implemented a range of measures to reduce consumption. Pakistan and Bangladesh have canceled classes, while the Maldives and Nepal have started rationing liquefied petroleum gas.

The International Energy Agency (IEA) on Friday laid out 10 recommendations to curb energy demand, including implementing work-from-home arrangements when possible, reducing speed limits on highways, encouraging public transport use, carpooling, switching to electric cooking appliances and avoiding air travel when alternatives exist.