EV Shift Seen Cutting Fuel Import Dependence, Boosting Philippine Economy

WIDER ADOPTION of electric vehicles (EVs), particularly in public transport, could reduce the Philippines’ reliance on imported fuel and lower transport costs, industry leaders said on Wednesday, arguing that electrification has become an economic imperative rather than just an environmental goal. “When you go electric now, it is you helping not only yourselves but also your country,” Global Electric Transport President Sigfrido R. Tiñga told a House of Representatives forum. Mr. Tiñga said 96% of the country’s transport sector still relies on imported oil, leaving the economy vulnerable to volatile global fuel prices. He said electrifying public transportation could reduce operating costs by as much as 75%, noting that diesel-powered jeepneys typically spend about P5,000 a day on fuel compared with P1,000 to P1,500 on electricity. “We don’t need more roads, we need fewer cars. You need to fix public transport,” he said. Mr. Tiñga said the biggest economic gains from EV adoption would come from improving mass transportation, arguing that reducing commuting times would boost productivity. “If you fix mass transport in this country, you are going to have a huge positive economic effect,” he said. “You can’t have a good economy if people are taking two to three hours on the road one way to get to work, and the same two to three hours going home.” Electric Vehicle Association of the Philippines Chairman Willy Tee Ten said the country remains behind its Southeast Asian neighbors in attracting EV manufacturing because domestic demand is still too small to support large-scale production. “We only have 61,000 EVs out of 15 million vehicles now,” he said. “So if you produce it locally right now, there’s no economies of scale,” he added, noting that expanding EV adoption should take priority over pursuing local manufacturing. Mr. Ten said the government should lead the transition while the private sector continues investing in EV sales and charging infrastructure. He also called for more renewable energy investments to support the country’s long-term electrification goals. Meanwhile, Liveable Cities Philippines Chairman Guillermo M. Lux said EVs alone would not solve traffic congestion but should form part of broader transport reforms. He added that the country’s expanding renewable energy sector and semiconductor industry could help boost the development of an EV ecosystem, noting that the Philippines already has strengths in automotive electronics through its semiconductor exports. Meanwhile, Bukidnon Rep. Jose Manuel F. Alba, chairman of the House Committee on Sustainable Development Goals, said lawmakers are pushing the proposed Low Carbon Economy Investment bill, which would encourage businesses to adopt greener practices through incentives. He said the measure recognizes that industries have different capacities to reduce emissions, particularly hard-to-abate sectors such as aviation, and would provide businesses with multiple pathways to meet decarbonization commitments while supporting the country’s long-term net-zero goals. — Pexcel John Bacon