House leaders have filed a bill establishing a national protection system designed to automatically shield Filipinos from the economic fallout of global oil crises.
The measure, titled the KALINGA Act, was introduced 8 April by House Speaker and Isabela Representative Faustino “Bojie” Dy and Majority Leader Alexander “Sandro” Marcos. The bill proposes a structured response to prevent price surges in essential commodities, including electricity, food, and public transport.
“With the KALINGA Act, there is a clear system — there is a trigger, there is action, and there is help,” Marcos said in a statement Sunday. “This is not just aid. It is protection... when prices rise, help is automatic.”
The bill outlines several safety nets, including a fuel stabilization component, a targeted assistance component, and an essential goods and logistical stabilization component.
Marcos stressed that the legislation aims to ensure no sector is left behind by initiating government action before a crisis peaks.
In a separate proposal to address rising fuel costs, House Committee on Ways and Means chairperson Representative Miro Quimbo suggested a government loan facility for oil companies as an alternative to price controls.
Quimbo cited that petroleum retailers currently use a “replacement cost” scheme, which can drive up pump prices based on the expected cost of new inventory, even if current stocks were purchased at lower rates.
He warned that traditional price controls could discourage firms from restocking, leading to supply shortages.
“This is where the government can step in since this is a liquidity issue,” Quimbo said. “Our suggestion is... why not first lend to the gas companies at a reasonable interest rate so they can make purchases?”
The lawmaker added that such a mechanism would allow firms to maintain supply while easing immediate pricing pressures on consumers. He expects the loans to be repaid quickly once global market prices stabilize.
The proposals come as volatility in the Middle East continues to impact domestic fuel prices. Quimbo also raised concerns regarding “cartel-like” behavior in weekly price adjustments, noting that oil firms will be summoned to explain their pricing mechanisms during an upcoming congressional inquiry.