World March 25, 2026

Philippines Seeks U.S. Waivers to Secure Oil From Sanctioned Suppliers Amid Energy Emergency

Manila engages Washington to obtain exemptions as it builds buffer stock and deploys emergency measures to safeguard fuel supplies

By Ajmal Hussain
Philippines Seeks U.S. Waivers to Secure Oil From Sanctioned Suppliers Amid Energy Emergency

The Philippines is coordinating with the U.S. State Department to secure waivers or exemptions that would permit purchases of oil from countries subject to U.S. sanctions. The move comes as Manila declares a one-year national energy emergency to manage supply disruptions resulting from the Middle East war, build buffer stocks and deploy special procurement powers to ensure continued fuel availability.

Key Points

  • The Philippines is coordinating with the U.S. State Department to obtain waivers or exemptions that would allow it to buy oil from U.S.-sanctioned countries.
  • A one-year national energy emergency was declared to grant the government special powers to secure fuel, including advance payments on contracts and direct purchases.
  • Manila reported around 45 days of fuel supply as of March 20 and is procuring an additional 1 million barrels to expand its buffer stock; temporary measures include increased coal generation and limited use of Euro II fuel.

MANILA - The Philippines is in active discussions with the United States to obtain waivers or exemptions that would allow it to import oil from countries currently subject to U.S. sanctions, the Philippine ambassador to Washington said in direct remarks exchanged with Reuters.

Jose Manuel Romualdez said: "We are working with the State Department to get waivers or exemptions to purchase oil from U.S.-sanctioned countries." When asked whether potential imports from Venezuela and Iran were part of those conversations, he replied that "all options are being considered." On the question of how the State Department had responded so far, Romualdez described the effort as "Work in progress."

Manila has declared a state of national energy emergency to address fallout from the Middle East war and disruptions to oil procurement. The declaration, which will remain in place for one year, grants the government expanded powers intended to assure timely and adequate fuel supplies. Among those powers are the authority to purchase fuel and petroleum products directly and to pay portions of contract amounts in advance to secure deliveries.

Government figures released on March 20 indicated the country had roughly 45 days of fuel on hand. To bolster that buffer, officials said they are procuring an additional 1 million barrels of oil. In a televised address, President Ferdinand Marcos Jr sought to reassure the public, saying the nation would not run dry at the end of the 45-day period because the administration was seeking alternative sources. "We are exploring other sources not affected by the war," he said. "Things are beginning to open up...we can be confident that after the 45 days we will have a flow of oil." He described the emergency declaration as a "precautionary tool" to enable the government to be ready "for whatever comes next."

Policy measures already put in place include a temporary increase in coal-fired electricity generation to relieve energy supply pressures. Regulators have also allowed the temporary and limited use of Euro II fuel, a cheaper but more polluting grade, in order to maintain fuel availability.

Labor and civic groups have signaled public discontent. Transport workers, commuters and consumer organizations have announced plans for a two-day strike beginning Thursday to protest higher fuel prices and what they describe as inadequate government action on the issue.

On supply movements, energy shipment data from Kpler shows at least two cargoes of Russian ESPO crude are en route to the Philippines this month. A cargo of Abu Dhabi Murban crude is expected to reach the country's Bataan terminal on April 8. Kpler data indicate that the incoming Russian cargo would represent the Philippines' first imports of Russian crude in five years, following the issuance of a 30-day waiver by the United States.

Washington has also issued a 30-day sanctions waiver related to Iranian oil already at sea. That waiver applies to oil loaded on any vessel on or before March 20 and discharged by April 19, and covers tankers that are under sanctions.


Policy context and operational steps

The government’s array of measures combines diplomatic engagement, emergency procurement powers and short-term adjustments to domestic energy supply mixes. Officials are building additional crude reserves while simultaneously seeking to expand permissible import sources through coordination with the U.S. State Department.

Officials stressed caution to the public. "We should not panic," the president said, while reiterating that the government is taking steps intended to alleviate supply risks and maintain fuel availability.


Outlook

Manila's efforts to secure waivers and broaden import options, together with temporary domestic measures, aim to maintain continuity of supply in the near term. The government has set a one-year emergency window to implement these powers and build resilience against potential future disruptions.

The situation remains in development as diplomatic negotiations continue and cargo movements proceed. Authorities are monitoring supply levels and procurement progress while managing public concern over fuel costs and availability.

Risks

  • Supply disruption risk: Reliance on Middle East crude (with Saudi Arabia as the largest supplier) leaves the country vulnerable to continued shocks in global oil markets, affecting transportation and industrial sectors.
  • Political and social risk: Planned two-day strikes by transport workers, commuters and consumer groups in protest over fuel price increases could disrupt mobility and economic activity, impacting retail and services sectors.
  • Diplomatic and legal uncertainty: The outcome of talks with the U.S. State Department on waivers or exemptions for purchases from sanctioned countries remains unresolved, creating uncertainty for planned imports and procurement timelines that influence energy and shipping markets.

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