Insider Spotlight
“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 price of power prices,” he said in a string of posts on March 4, 2026 the social media platform X.
The move comes as global fuel markets remain volatile and the Philippines continues to depend heavily on imported energy to generate electricity.
Why it matters
Meralco’s supply portfolio is heavily weighted toward natural gas, which currently accounts for about 60 percent of its power mix. Much of this comes from gas-fired plants that historically relied on Malampaya gas and are increasingly shifting toward imported liquefied natural gas.
Coal contributes about 20 percent of the utility’s supply and remains an important baseload source for the grid.
Renewable energy sources such as solar, wind, and hydro make up roughly 10 percent of the portfolio, reflecting the gradual expansion of clean energy projects in the country.
Another 10 percent comes from the Wholesale Electricity Spot Market, or WESM, where utilities purchase power depending on supply and demand conditions.
The heavy dependence on gas — increasingly imported as LNG — means price swings in global fuel markets can quickly influence electricity generation costs.
What he’s saying
Pangilinan said Meralco is monitoring fuel exposure to ensure stable supply while limiting the impact of price volatility on consumers.
“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 cost of goods rises globally.”
Between the lines
Global energy markets have been unsettled by rising geopolitical tensions, including ongoing conflict in the Middle East that could disrupt fuel supply routes.
Because the Philippines imports a large share of its fuel for power generation, increases in LNG, coal, or diesel prices can eventually flow through to electricity rates.
Pangilinan also called on consumers to help manage electricity demand during the uncertain period.
“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 bottom line
Meralco is reassessing its fuel exposure as global tensions threaten LNG and coal prices, underscoring the Philippines’ reliance on imported energy to power its grid.
— Edited by Daxim L. Lucas
