Manila: Speaker Faustino 'Bojie' Dy III on Monday outlined the first major intervention under the proposed KALINGA Act, positioning the measure as a fuel price stabilization shield as the House prepares for a new round of hearings this week after United States President Donald Trump announced that the U.S. would move to blockade the Strait of Hormuz. Dy said developments affecting the Strait of Hormuz - one of the world's key oil shipping routes - highlight the need for the government to prepare policy tools that can cushion potential volatility in fuel prices.
According to Philippines News Agency, Dy, together with House Majority Leader Ferdinand Alexander 'Sandro' Marcos, filed House Bill No. 8834 establishing the KALINGA Program - Komprehensibong Alalay sa Livelihood, Inflation, Negosyo and Goods Assistance. This centralized framework is designed to cushion the impact of fuel-driven inflation while ensuring energy and essential goods supply. The proposal integrates seven pillars: fuel price stabilization; energy supply security and inventory management; targeted assistance; essential goods and logistics stabilization; MSME energy relief and business continuity; energy conservation and demand reduction; and flexible fiscal and regulatory measures.
The first pillar, Section 5 of the proposed measure, focuses on stabilizing pump prices and cushioning the immediate impact of oil shocks through targeted fuel subsidies, flexible fuel tax adjustments, price-smoothing mechanisms, and temporary transport fare support. Under Section 5, the Fuel Price Stabilization Component includes targeted fuel subsidy programs for the transport, agriculture, fisheries, and logistics sectors; flexible fuel tax adjustments, including the temporary suspension, reduction, or staggered implementation of excise taxes on petroleum products; fuel price-smoothing mechanisms; temporary transport fare support programs; and other price stabilization interventions as may be necessary.
Dy said the measure is intended to enable the government to act quickly before fuel price spikes ripple across the entire economy. '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 (When the price of diesel rises, there is a domino effect on fares, food, electricity and price of commodities. We cannot just wait while prices of goods rise). We need to be proactive,' Dy said in a news release.
The KALINGA bill creates a fuel price stabilization shield so government can intervene quickly through targeted subsidies, flexible tax tools, and price-smoothing mechanisms to cushion the impact on ordinary Filipinos. Dy emphasized that the stabilization component is designed to provide immediate relief while the broader KALINGA framework addresses supply, logistics, and long-term resilience. '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,' he said.
The measure prioritizes targeted and time-bound interventions, including support for the transport, agriculture, fisheries, and logistics sectors - industries most directly affected by fuel price movements. Dy said the filing of the KALINGA bill is one of the concrete legislative actions the House is proposing as the Legislative Energy Action Development (LEAD) Joint Committee continues deliberations this week.
The LEAD Joint Committee, composed of 13 House committees, is scheduled to hold hearings on Monday, Wednesday, and Thursday in order to consolidate both immediate relief measures and long-term reforms in response to global oil price volatility.
Meanwhile, Marikina City Rep. Miro Quimbo, chair of the House Committee on Ways and Means, assured the public of a steady, coordinated, and carefully calibrated response to the fuel crisis. 'Hindi lamang ang pinakamabilis o pinakamadaling solusyon ang ating hinahanap. Ang tunay na kailangan natin ay ang wastong balanse ng isang solusyong maagap, epektibo, at responsible (We are not just looking for the quickest or easiest solution. What we really need is the right balance of a solution that is prompt, effective and responsible),' Quimbo said as the LEAD Joint Committee conducted its second hearing to assess the economic impact of rising fuel prices and refine the government's response.
Quimbo said the situation, while challenging, is being addressed through a coordinated and data-driven approach. He added that while global developments continue to exert pressure on the nation's economy, the country's fuel supply remains stable, with the government focused on managing affordability and minimizing the impact on households. 'We saw how the ongoing global conflict has translated into real economic pressures here at home. We were reminded that while supply remains stable for now, the real issue confronting us is affordability and the cascading effects of high prices across the economy,' he said.
He assured that all policy options, including proposals such as suspending the value-added tax (VAT), are being carefully evaluated to ensure they deliver meaningful relief. 'However, as emphasized in our previous discussions, these measures must be carefully studied-not only in terms of the overall fiscal impact, but more importantly, whether they will truly result in meaningful reductions in pump prices for our people without undermining the long-term strength of our economy,' he said.
