House Speaker Faustino "Bojie" Dy III on Monday proposed a fuel price stabilization mechanism under the KALINGA bill, as the Legislative Energy Action and Development (LEAD) Joint Committee continues hearings to address the impact of global oil volatility on the Philippine economy.
The proposal comes amid rising geopolitical tensions affecting the Strait of Hormuz, a critical passage for global oil supply, underscoring the need for proactive government intervention.
Filed alongside House Majority Leader Ferdinand Alexander "Sandro" Marcos, House Bill No. 8834 seeks to establish the KALINGA Program, Komprehensibong Alalay sa Livelihood, Inflation, Negosyo and Goods Assistance, a comprehensive framework aimed at cushioning the effects of fuel-driven inflation while ensuring energy and goods supply stability.
At the core of the measure is a fuel price stabilization component, which includes targeted subsidies for key sectors such as transport, agriculture, and fisheries, as well as flexible fuel tax adjustments, price-smoothing mechanisms, and temporary transport fare support.
Dy stressed the urgency of early intervention to prevent widespread economic impact.
“Kapag tumaas ang presyo ng krudo, may domino effect ito sa pamasahe, pagkain, kuryente, at presyo ng mga bilihin. Hindi puwedeng maghintay lang tayo habang tumataas ang presyo ng bilihin. We need to be proactive,” he said.
He added that the bill is designed to act as a “fuel price stabilization shield,” allowing the government to respond quickly to sudden price spikes and protect consumers.
“This is not just about reacting to price increases. It’s about preventing a full-blown inflationary spiral by stabilizing fuel costs at the outset,” Dy emphasized.
The KALINGA bill outlines seven key components, including energy supply security, targeted assistance, logistics stabilization, and support for micro, small, and medium enterprises (MSMEs), all aimed at strengthening economic resilience.
Dy noted that the measure forms part of the House’s broader legislative response as the LEAD Joint Committee—composed of 13 panels—continues deliberations this week to refine both immediate relief measures and long-term reforms.
Lawmakers are expected to hold further hearings to consolidate policy actions addressing fuel price shocks and their cascading effects on Filipino households and key industries.
