The Philippine Senate is being asked to scrutinize how government agencies are managing public funds as the ongoing conflict in the Middle East continues to strain the country’s fiscal position.
Senator Sherwin Gatchalian filed Senate Resolution No. 349 calling on the appropriate Senate committee to hold an inquiry, in aid of legislation, into whether government offices are exercising prudent fiscal management in implementing Republic Act No. 12314, or the 2026 General Appropriations Act.
The resolution points to the Philippines’ heavy dependence on Middle East oil — importing roughly 98 percent of its crude supply from the region — as a key vulnerability now being tested by the escalating hostilities involving the United States, Israel, and Iran. Industry players have raised the alarm over a potential nationwide fuel shortage in the months ahead if the situation does not ease.
President Marcos has already moved to address the energy strain, issuing Memorandum Circular No. 114 on March 6, 2026, which directed all government offices to enforce energy conservation measures. The order includes a temporary four-day on-site work arrangement and a mandatory reduction in electricity and fuel consumption of between 10 and 20 percent. The Department of Energy has since reported that about 196 government agencies — nearly 90 percent of those assessed — are now in compliance.
With fuel prices threatening to spike further, Gatchalian’s resolution argues that agencies must revisit their spending plans under the 2026 budget, tightening allocations to reflect the changed economic environment rather than the conditions that existed when the budget was crafted.
The resolution comes as lawmakers continue to look for ways to cushion the blow on ordinary Filipinos. At a separate Senate finance committee hearing, the Department of Budget and Management raised the possibility of tapping the P39.8-billion calamity fund to cover potential fuel subsidies for public utility vehicle drivers, farmers, and fisherfolk — provided the President issues the necessary declaration.
