Councilor Danilo C. Dayanghirang is urging Congress to revive the Oil Price Stabilization Fund (OPSF) or establish a similar mechanism to shield Filipino consumers and key economic sectors from sharp and prolonged increases in fuel prices.
Dayanghirang, chairperson of the Committee on Finance, Ways and Means, and Appropriations, proposed on Tuesday a resolution calling on the Senate and House of Representatives to enact legislation re-establishing the OPSF or a similar mechanism that could cushion the impact of volatile fuel prices on consumers, public transportation, agriculture and the broader economy.
The proposed measure cited continuing fluctuations in global crude oil prices and foreign exchange rates, which have contributed to unpredictable changes in local pump prices and placed additional pressure on families, workers, farmers, fisherfolk, transport operators and businesses.
Dayanghirang said petroleum products are essential to nearly every sector of the economy, with fuel costs affecting transportation, electricity generation, food production, manufacturing and logistics.
The proposed resolution noted that higher fuel prices also translate into higher costs of basic goods and services, further fueling inflation and reducing the purchasing power of ordinary Filipinos.
“The measure seeks to bring back a mechanism similar to the OPSF previously maintained by the national government, which was intended to cushion consumers from sudden oil price increases,” Dayanghirang said.
The OPSF was established to help minimize frequent changes in domestic petroleum prices resulting from fluctuations in world crude oil prices and foreign exchange rates. It operated under a government-administered framework before the downstream oil industry was deregulated and the fund was subsequently discontinued.
Dayanghirang emphasized that any revived stabilization mechanism should be modernized, transparent and properly audited, ensuring that it provides temporary relief during extraordinary price spikes without undermining competition in the deregulated downstream oil industry.
He added that a re-established fund could help protect vulnerable sectors while supporting economic stability.
The proposed resolution states that restoring an oil price stabilization mechanism would help “preserve economic stability, protect vulnerable sectors, sustain public transportation services, support agricultural productivity, and lessen the inflationary pressures affecting the entire country.”
Under the proposal, copies of the resolution would be furnished to the Office of the President, the Senate, the House of Representatives, the Department of Energy (DOE), the Department of Finance (DOF), the National Economic and Development Authority (NEDA) and other concerned government agencies for appropriate action.
Dayanghirang also said the proposal is ultimately about providing Filipino consumers with a stronger buffer against fuel shocks that ripple through the economy, from the cost of getting to work to the price of food on the table.
