Why high fuel costs could accelerate the Philippines’ EV boom

AdvertisementThe PhilippinesThis Week in AsiaEconomicsWhy high fuel costs could accelerate the Philippines’ EV boomVietnam’s VinFast is seizing the moment by offering incentives for drivers to make the switch from petrol-powered vehicles to electric 3-MIN READ3-MIN ListenSam BeltranPublished: 8:00am, 7 Apr 2026When 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. AdvertisementThe 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.AdvertisementOn 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.AdvertisementSelect VoiceSelect Speed0.8x0.9x1.0x1.1x1.2x1.5x1.75x00:0000:001.00x