Why high fuel costs could accelerate the Philippines’ EV boom
A person on an electric scooter passes a jeepney at a transport terminal in Quezon City on March 19.
The Philippines is grappling with a national energy emergency triggered by the war in Iran.
Photo: EPA When Filipino motoring journalist James Deakin recently posted a photo of his fuel receipt – more than 4,000 pesos (US$67) after topping up on nearly 39 litres – his message to followers was blunt: “I’m seriously looking at an EV [or] hybrid now.
What’s your breaking point?” He is far from alone.
As the Philippines grapples with a national energy emergency triggered by the war in Iran, record pump prices are forcing consumers to rethink their transport methods, and Vietnamese electric vehicle maker VinFast is betting it can turn that desperation into demand.
In March, the company launched a “Trade Gas for Electric” programme across the Philippines and three other Asian markets, offering buyers who switch from petrol-powered vehicles an additional 3 per cent discount on electric cars and 5 per cent off its electric scooters.
The incentives come at a moment of acute vulnerability.
The Philippines imports 95 per cent of its oil, making it one of Southeast Asia’s most exposed economies to price shocks from the Middle East conflict.
An oil deregulation law passed in 1998 shifted the responsibility for supply and pricing to the private sector, leaving the government unable to intervene or dictate prices – and consumers directly exposed to global volatility.
On March 24, President Ferdinand Marcos Jnr declared a national energy emergency over what he said was an “imminent danger” to the country’s energy supply.
Diesel prices are expected to soar to 160 pesos this week, dragging on a minimum daily wage of 695 pesos for non-agricultural workers in the capital.
People check out an electric bike at a shop in Quezon City, the Philippines, in March as they explore ways to save on transport costs following oil price spikes.
Photo: AP The Department of Energy has previously noted that EVs are much cheaper to run than internal combustion engine vehicles, at 1.75 pesos per kilometre compared with 5 pesos.
Even before the Iran war began, that cost gap was helping fuel consumer interest.
EV sales surged 66 per cent in the first two months of 2026 compared with the same period a year earlier, according to data from the Chamber of Automotive Manufacturers of the Philippines (Campi) and the Truck Manufacturers Association (TMA).
Patrick Aquino, director of the De
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