‘High energy costs strain Asean homes’

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June 18, 2026 | 12:00am

MANILA, Philippines — Households in the Philippines and across Southeast Asia continue to buckle under soaring electricity and fuel costs, with low-income families absorbing the biggest blow, according to the International Energy Agency.

The IEA said persistently high energy prices are squeezing household budgets across the region, leaving many families with little choice but to cut back on essential expenses such as food and health care to cover their bills.

“In the crisis, households have faced rising energy bills, especially those who are reliant on transport fuels for their daily commutes,” the intergovernmental organization said in its Southeast Asia Energy Outlook 2026.

Since the US-Israel war with Iran erupted in late February, fuel prices in the Philippines have surged sharply, more than doubling at their peak.

At one point, diesel prices in Metro Manila and other highly urbanized cities climbed to as high as P170 per liter before easing Middle East tensions triggered a series of rollbacks that helped stabilize costs.

Electricity prices also came under pressure, with Filipinos facing higher power bills amid the combined impact of elevated fuel costs and increased demand due to the extreme summer heat.

In the country’s spot market, the average electricity rate jumped by 38.5 percent to P7.79 per kilowatt-hour in May from the previous month’s P5.63 per kWh.

Costly energy prices, however, do not hit households in the same way, according to the IEA.

Low-income families, in particular, are spending around 16 percent of their budgets on their energy bills, compared with just eight percent for high-income households and 11 percent for median-income households.

“Despite this, low-income households consume only about half as much energy as high-income households and one-third less than median-income households,” the IEA noted.

Against this backdrop, the report underscored the need to address major energy vulnerabilities in Southeast Asia to ensure affordability while meeting rising demand.

It likewise stressed the urgency of accelerating renewable power deployment, improving energy efficiency and expanding the adoption of electric mobility.

“Southeast Asia is a crucial region shaping global energy trends and is set to account for 20 percent of the growth in the world’s energy demand over the next decade, second only to India,” IEA executive director Faith Birol said.

“Diversification of energy sources and supply routes is now a central priority, with deployment of different fuels and technologies, electrification and efficiency serving as important levers to reduce import exposure and strengthen resilience,” Birol said.