Key facts
- Philippines in talks with Saudi Arabia, Russia, and US on oil storage.
- Goal is to hedge against fuel price spikes driven by the Iran war.
- Nation plans to increase diesel and gas-fired power output.
- Hydropower output estimated to decline 60% and solar 20% in early 2027 due to El Nino.
The Philippines is in discussions with Saudi Arabia, Russia, and the United States concerning oil storage arrangements. This initiative is intended to serve as a hedge against potential fuel price volatility exacerbated by the ongoing Iran war. As a nation that imports the vast majority of its energy needs, the Philippines is also preparing to increase its reliance on diesel and gas-fired power generation. This measure is necessary to offset an anticipated 60% decrease in hydropower output and a 20% reduction in solar power generation during the first half of 2027, attributed to the effects of the El Nino weather phenomenon.