Manny V. Pangilinan, chairman and chief executive officer of Manila Electric Company (Meralco), said Wednesday the country’s largest power distributor will review its fuel exposure as global price pressure mounts from an intensifying conflict in the Middle East that has sent oil and gas markets sharply higher.

In a series of posts on social media, Pangilinan made clear Meralco is closely watching international fuel benchmarks feeding into Philippine power costs.

“Meralco will review its current fuel position—especially LNG, the likely impact on the price of coal, the price of diesel—as these may affect power prices,” he wrote.

The statement comes amid an intensifying conflict involving the United States, Israel, and Iran that has unsettled global energy markets. The situation has disrupted shipping activity through the Strait of Hormuz—a chokepoint for a significant share of global oil and liquefied natural gas volumes and contributed to recent jumps in crude and gas prices on international markets.

“We want to ensure adequate supply of power and manage price volatility as responsibly as possible. Have made it clear to the team that we must help protect consumers as the cost of goods rises globally,” Pangilinan said.

He also urged customers to use electricity judiciously in the near term.

“It would also help if we’re mindful of our electricity consumption as the war in the Middle East continues. We import much of the fuel used to generate power—we can all help to have enough power to get through the next few weeks if we conserve power,” the chairman urged.

Meralco and other distribution utilities pass generation costs, heavily influenced by global coal, LNG and diesel prices, through to retail tariffs, making any international price shocks a core concern for regulators, industry stakeholders, and large consumers. The Department of Energy has already flagged the potential for higher domestic fuel prices linked to Middle East conflict.  

What implications do you see from Meralco’s fuel review and market signals from the Middle East? Join the discussion.

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