A proposed law establishing a systematic relief framework for Filipinos during fuel price crises has been introduced in the House of Representatives, with Majority Leader Ferdinand Alexander Marcos describing it as a measure that removes ambiguity from the government’s response obligations.
House Bill 8834, called the Kalinga Act, was filed jointly by Marcos and Speaker Faustino Dy III. “There is a trigger, there is action, there is aid,” Marcos said in a statement, summarizing the bill’s core design.
The legislation defines specific conditions under which the Kalinga program would be activated. These include a rise in global crude oil prices beyond set market thresholds — benchmarked against the average Dubai crude oil price through the Mean of Platts Singapore — and local fuel price increases of at least 30 percent within a 30-day period. Other triggers include an extraordinary inflation determination by the Bangko Sentral ng Pilipinas, a drop in national fuel inventory below a 30-day supply level as assessed by the Department of Energy, imminent supply disruptions, a presidential declaration of a national energy emergency, and other external shocks that significantly drive up domestic fuel costs or threaten supply.
Once activated, the program would deliver direct cash transfers to minimum wage earners and low-income households, fuel subsidies for public transport drivers, farmers, fisherfolk, and logistics providers, and fare subsidies for low-income commuters.
Small businesses would also fall within the program’s scope. Under HB 8834, micro, small, and medium enterprises would be eligible for targeted energy subsidies, low-interest loans, credit guarantees, tax payment deferments, and logistics support. The bill also provides for a moratorium of up to six months on loan interest payments and collection under government financial institutions and directed lending programs for qualified MSMEs.
On the supply side, the bill would authorize the government to cut fuel excise taxes and import duties, reduce regulatory fees, and take other fiscal measures to cushion the impact of price shocks.
A Kalinga Inter-Agency Task Force would be established to coordinate and oversee the program’s rollout. The body would be co-chaired by the executive secretary and the heads of the Department of Energy and the Department of Finance, with membership drawn from agencies including the Department of Economy, Planning, and Development; Department of Budget and Management; Department of Trade and Industry; Department of Agriculture; Department of Transportation; Department of Social Welfare and Development; Bangko Sentral ng Pilipinas; and the Philippine Statistics Authority.
