A staggering P52.8 billion in supplemental budget has to be passed by Congress to cushion the inflationary impacts of the anticipated oil crisis caused by the ongoing conflict in the Middle East. This budget is “reasonably enough” to cover subsidies for repatriation, transportation, and agriculture, for the whole year, according to Senator Risa Hontiveros on Monday.

The lion’s share of the estimated amount shall bankroll the emergency fund for the repatriation and reintegration of overseas Filipino workers stranded in the region at P38 billion, followed by transportation and agricultural subsidies with P12 billion and 2.8 billion, respectively.

“If the disruption in global oil supply due to the war continues, the government must cushion the imminent economic shock from the escalating oil crisis,” Hontiveros said in a briefing.

The funding for these subsidies could be sourced from the P70 billion in discontinued flood control projects in 2025, as well as from the P2.5 billion farm machinery of the Philippine Center for Postharvest Development and Mechanization, she added.

Last week, the Department of Migrant Workers said it would need supplemental funding from Congress to finance the repatriation expenses of OFWs in the Middle East, numbering at 2.4 million, if the conflict there reaches “worst-case scenario.”

The figures exclude stranded pilgrims in the region, though some of them were already repatriated.

Senator Sherwin Gatchalian, head of the finance committee, projected that the DMW will need as high as P13 billion in supplemental funding, though it only covers 93,000 Filipinos in the Middle East.

Overseas Workers Welfare Administration Administrator Patricia Yvonne Caunan told a Senate panel last week that the agency only has P1.286 billion in the Emergency Repatriation Fund under this year’s budget plus P474 million from the previous year, bringing the total to P1.76 billion.

However, due to the heightening conflict in Middle Eastern countries, causing a spike in transportation and accommodation costs, Caunan said they will need an ample amount to cover all repatriation-related expenses.

The process of passing a supplemental budget mirrors that of a usual bill, which should emanate from the House of Representatives, according to Hontiveros.

Although the Department of Energy still has continuing appropriations of P2.5 billion from last year’s budget, the amount is insufficient to cover fuel subsidies for drivers, unless Congress passes a supplemental funding.

“P2.5 billion does not answer a potentially P12 billion problem. If the projected funding gap runs into billions, a budget that small won’t simply cut it,” Hontiveros said partly in Filipino. “It’s the same problem in the agriculture...The projected burden is at P2.8 billion, and the sector only has P150 million. That is not protection.”

Senators have expressed support for granting President Marcos Jr. emergency powers to cut excise taxes on petroleum products to mitigate the adverse impacts of the ongoing conflict in the Middle East.

Lawmakers have warned that the potential jacking up of petroleum costs has a domino effect and could drive up prices of basic commodities, transportation, and electricity.

Fuel prices are expected to go as high as P17 to P24 per liter this week, though oil firms have agreed to stagger the increase to avoid a one-time price shock.

Energy Secretary Sharon Garon allayed fears of fuel supply shortage, claiming that the country has enough fuel supply until the end of April.