A senator is moving to arm the government with the legal teeth to halt the “spiraling” cost of fuel as the nation braces for another surge in pump prices with diesel projected to hit P170 per liter and gasoline climbing to P120 per liter this week.
In a direct response to the deepening oil supply crisis sparked by Middle East tensions, Senator Bam Aquino filed Senate Bill No. 2011 or the Fuel Price Control Act. The measure seeks to classify gasoline, diesel and other petroleum products as “basic necessities” effectively allowing the government to impose a price freeze during national emergencies.
Under the decades-old Republic Act No. 7581 or The Price Act, only goods like rice, canned sardines, and LPG are subject to price controls during a state of calamity.
Despite the critical role in transport and food logistics, diesel and gasoline are notably absent from that list.
“Oo, sa mga batas natin ngayon, kapag may state of calamity, or state of national emergency, merong price freeze sa mga pangunahing bilihin. Pero napansin namin, hindi kasama dito ang diesel at gasoline. Kaya nais namin isama ang diesel at gasoline sa mga produktong mapa-price freeze kapag nagtawag ng state of national emergency. Kapag panahon ng emergency, mahalaga na yung taong bayan, makita nila na umaaksyon yung gobyerno at matitigil yung pagtaas ng presyo ng bilihin,” he said.
The proposed “Fuel Price Control Act” introduces several key mechanisms to protect consumers from the current volatile market.
The bill aims to reclassify gasoline and diesel as basic necessity same as food and medicine, making them eligible for mandatory price caps.
The bill also Extended Price Freeze Duration to allowable period for price control from the current 15 days to 30 days, ensuring stability during prolonged global supply shocks.
The price freeze “kicks in” immediately upon the declaration of a state of calamity or a state of national emergency, provided it is specified in the Executive Order.
With the ongoing crisis in the Middle East threatening the global supply chain, Aquino warned that the Philippines must move beyond “wait-and-see” tactics.
“We better prepare ahead… Securing supply is the number one job of the Department of Energy. But we must also support the workers who are directly affected and make sure our food prices don’t shoot up. The last time gasoline went up, food prices followed,” Aquino said.
Addressing concerns about market intervention, Aquino clarified that these powers are reserved only for the most dire situations. He noted that the measure does not allow for arbitrary declarations, but rather provides a safety net for when things are spiraling out of control.
“Hindi ka pwedeng magdeclare ng emergency, kung walang emergency…pero kapag totoo na nga, kapag nandito na yan, at transportation might be affected, dapat yung powers ng gobyerno hanggang sukdulan. I mean, it has to be there,” he explained.
Aside from the price freeze bill, Aquino is also advocating for the suspension of VAT and excise taxes on fuel, a move that could slash prices by nearly P20 per liter to provide immediate breathing room for drivers, farmers and the riding public.
