NextFin News -- The early morning calm in the Philippines' capital Manila on Thursday was shattered by the sounds of protest. Outside his home, Wang Xiao, a cross-border e-commerce businessman, heard the rising chants of jeepney drivers rallying in the streets, demanding the government address skyrocketing fuel prices that have doubled since the late February outbreak of tensions in the Middle East. As the conflict between the U.S./Israel and Iran escalates in the region, its ripple effects are beginning to reverberate throughout Asia, and the Philippines is bearing the brunt of the energy crisis.

Hundreds of jeepney drivers gathered in front of fueling stations in Manila, voicing their frustration over soaring diesel prices. These drivers, who operate the country’s most common form of public transport, face increasingly unaffordable fuel costs, which are now significantly impacting daily life. Their protest not only called for immediate action but also decried the ongoing war in the Middle East, urging the U.S. to reconsider its military actions.

The situation has deteriorated since the U.S.-Israeli airstrikes on Iran in late February, which triggered the closure of the Strait of Hormuz, the vital conduit for Asian oil and liquefied natural gas. Asia has long been heavily dependent on the Middle East for its energy needs, with roughly 90% of the region's oil and 83% of its LNG passing through this critical waterway. The conflict has led to a sharp rise in energy costs and prompted countries, including the Philippines, to declare an energy emergency.

With 98% of its oil imported from the Gulf, the Philippines was quick to react. On March 24, the country's president Ferdinand Marcos declared a national energy emergency, following a drastic increase in both diesel and gasoline prices. On March 26, the country’s energy regulatory body announced the suspension of its wholesale electricity spot market (WESM) due to fuel supply risks and market volatility caused by the ongoing conflict.

The Philippines has long been dependent on imported fossil fuels for its power generation, a reliance that has now left the nation vulnerable. As energy prices soar and supply chains tighten, ordinary Filipinos are beginning to feel the brunt of the crisis, with rising utility bills and increasing transportation costs adding to the strain.

Rising Living Costs and the Strain on Families

For Wang, a Manila resident, the financial strain is becoming all too clear. This March, his electric bill for a typical 62 kWh usage has climbed from 779 pesos (roughly $15) to 840 pesos (about $16). "The energy crisis means higher bills for electricity and more difficult travel for everyone," he said, underscoring the everyday realities faced by many Filipinos.