Legarda: When fuel prices surge, government must have the tools to act

Senator Loren Legarda is seeking a permanent fuel-security framework that would allow the government to closely monitor the fuel market during normal conditions and act quickly when prices and supply are threatened by a crisis.

The proposal responds to gaps exposed during the recent oil crisis and the Senate PROTECT Committee hearings, where questions arose over fuel inventories, actual acquisition costs, industry margins, and the basis for price adjustments.

Legarda filed Senate Bill No. 2435, or the proposed Philippine Fuel Security and Strategic Petroleum Reserve Act, on September 1, 2026. It gives the government clear but temporary powers during a declared fuel emergency while strengthening regular monitoring and verification.

“During the hearings, we saw how quickly prices could rise, while the government and the public had limited information on the actual cost of fuel already in the country, existing inventories, industry margins, and the basis for each adjustment. Families felt the increase immediately, but many basic questions could not be answered with the same speed,” Legarda said.

Oil companies explained that pump prices may be based on replacement cost, or the expected cost of the next shipment, even when the fuel being sold was acquired earlier at a lower price. The government, however, did not always have ready access to the records needed to independently check the costs and margins involved.

“Hindi natin sinasabing bawal kumita ang mga kumpanya. Ngunit kapag may krisis at mabilis na tumataas ang presyo, dapat kayang alamin ng gobyerno kung makatwiran ang dagdag o kung may nakikinabang nang labis habang naghihigpit ang mga pamilya. Walang dapat makalamang sa panahon ng krisis,” Legarda said.

Under the bill, the Department of Energy will continuously monitor fuel supply, inventories, acquisition and landed costs, price movements, distribution, and market behavior. When verification is needed, DOE may require contracts, invoices, bills of lading, import entries, and documents covering freight, insurance, storage, and hauling costs.

This authority applies even without a declared emergency, but is limited to monitoring, verification, planning, consumer protection, and enforcement. It does not amount to ordinary price control, and commercially sensitive information must remain confidential.

“Monitoring is different from regulating. Sa normal na panahon, kailangang alam ng DOE ang totoong kalagayan ng suplay, gastos, at presyo. Kapag dumating ang krisis, saka lamang maaaring gamitin ang malinaw, limitado, at pansamantalang kapangyarihang kailangan upang protektahan ang publiko,” Legarda explained.

During a declared fuel emergency, the DOE may impose temporary pricing and supply measures, including price or margin limits, priority allocation for essential services, inventory requirements, distribution directives, and emergency procurement.

DOE may also limit, adjust, suspend, or require verification of replacement-cost pricing when its continued use is likely to result in premature price increases, delayed rollbacks, excessive margins, or market abuse. An emergency pricing method may instead consider actual acquisition cost, average inventory cost, landed cost, reasonable logistics expenses, and reasonable margins.

The measure also addresses questions raised during the hearings about additional government revenues when higher fuel prices increase VAT and other fuel-related collections. It requires the publication of a Fuel Tax Transparency Report comparing actual collections with official revenue assumptions.

“Habang tumataas ang presyo at nababawasan ang kayang bilhin ng pamilya, dapat malinaw din kung magkano ang karagdagang nakokolekta ng gobyerno. The public deserves to know whether the government is receiving windfall collections from the same crisis that is causing them hardship,” Legarda said.

If substantial additional or windfall collections are identified, the Department of Finance (DOF) and the Department of Budget and Management (DBM) must recommend appropriate relief. This may include temporary fuel-tax reductions, public transport support, assistance for farmers and fisherfolk, food logistics, or disaster response.

The bill also creates a Strategic Petroleum Reserve for major national supply disruptions and a Government Operational Fuel Reserve to keep essential services running. DOE will lead the program, while the Philippine National Oil Company will serve as the State’s fuel-security agent.

“Hindi natin dapat ulitin sa susunod na krisis ang parehong paghahanap ng datos, pagtatalo sa batayan ng presyo, at paghahabol ng magkakahiwalay na tugon. We have seen where the gaps lie. This bill puts the information, safeguards, emergency powers, tax accountability, and fuel reserves into one permanent system,” Legarda concluded. (30)

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Legarda: Dapat may kakayahan ang gobyernong kumilos kapag biglang tumataas ang presyo ng langis

Isinusulong ni Senador Loren Legarda ang isang permanenteng sistema para matiyak ang seguridad ng suplay ng langis at bigyan ang gobyerno ng kakayahang masusing bantayan ang merkado sa normal na panahon at agad na kumilos kapag nalalagay sa panganib ang presyo at suplay dahil sa isang krisis.

Tinutugunan ng panukala ang mga kakulangang lumitaw noong nagdaang krisis sa langis at sa mga pagdinig ng Senate PROTECT Committee, kung saan lumitaw ang mga tanong tungkol sa dami ng imbentaryo ng langis, aktuwal na halaga ng pagbili nito, tubo ng industriya, at batayan ng mga pagbabago sa presyo.

Inihain ni Legarda noong Setyembre 1, 2026 ang Senate Bill No. 2435, o ang panukalang Philippine Fuel Security and Strategic Petroleum Reserve Act. Bibigyan nito ang gobyerno ng malinaw ngunit pansamantalang kapangyarihan kapag idineklara ang fuel emergency, habang pinatitibay din ang regular na pagbabantay at beripikasyon sa merkado.

“During the hearings, we saw how quickly prices could rise, while the government and the public had limited information on the actual cost of fuel already in the country, existing inventories, industry margins, and the basis for each adjustment. Families felt the increase immediately, but many basic questions could not be answered with the same speed,” pahayag ni Legarda.

Ipinaliwanag ng mga kumpanya ng langis na ang presyo sa mga gasolinahan ay maaaring ibatay sa replacement cost, o sa inaasahang halaga ng susunod na shipment, kahit mas mababa ang presyo nang bilhin ang langis na kasalukuyang ibinebenta. Gayunman, hindi palaging agad na nakukuha ng gobyerno ang mga rekord na kailangan upang masuri nang hiwalay ang aktuwal na gastos at tubo ng mga kumpanya.

“Hindi natin sinasabing bawal kumita ang mga kumpanya. Ngunit kapag may krisis at mabilis na tumataas ang presyo, dapat kayang alamin ng gobyerno kung makatwiran ang dagdag o kung may nakikinabang nang labis habang naghihigpit ang mga pamilya. Walang dapat makalamang sa panahon ng krisis,” diin ni Legarda.

Sa ilalim ng panukala, patuloy na babantayan ng Department of Energy ang suplay ng langis, mga imbentaryo, halaga ng pagbili at landed cost, galaw ng presyo, distribusyon, at kilos ng merkado. Kapag kailangan ng beripikasyon, maaaring hingin ng DOE ang mga kontrata, invoice, bill of lading, import entry, at mga dokumentong may kaugnayan sa freight, insurance, storage, at hauling costs.

Magagamit ang kapangyarihang ito kahit walang idineklarang emergency, ngunit limitado lamang ito sa monitoring, verification, planning, consumer protection, at pagpapatupad ng batas. Hindi ito nangangahulugan ng karaniwang price control, at kailangang manatiling kumpidensiyal ang sensitibong impormasyong pangkomersiyo.

“Monitoring is different from regulating. Sa normal na panahon, kailangang alam ng DOE ang totoong kalagayan ng suplay, gastos, at presyo. Kapag dumating ang krisis, saka lamang maaaring gamitin ang malinaw, limitado, at pansamantalang kapangyarihang kailangan upang protektahan ang publiko,” paliwanag ni Legarda.

Kapag idineklara ang fuel emergency, maaaring magpatupad ang DOE ng pansamantalang hakbang sa presyo at suplay, kabilang ang pagtatakda ng limitasyon sa presyo o tubo, pagbibigay-priyoridad sa suplay para sa mahahalagang serbisyo, pagtatakda ng kinakailangang dami ng imbentaryo, mga direktiba sa distribusyon, at emergency procurement.

Maaari ring limitahan, baguhin, suspendihin, o ipasailalim sa beripikasyon ng DOE ang replacement-cost pricing kapag ang patuloy na paggamit nito ay maaaring magdulot ng maagang pagtaas ng presyo, pagkaantala ng rollback, labis na tubo, o pang-aabuso sa merkado. Sa halip, maaaring gumamit ng emergency pricing method na isinasaalang-alang ang aktuwal na halaga ng pagbili, average inventory cost, landed cost, makatuwirang gastos sa logistics, at makatuwirang tubo.

Tinutugunan din ng panukala ang mga tanong na lumitaw sa mga pagdinig tungkol sa karagdagang kita ng gobyerno kapag tumataas ang VAT at iba pang koleksyon mula sa langis kasabay ng pagtaas ng presyo nito. Inaatasan ng panukala ang gobyerno na maglabas ng Fuel Tax Transparency Report na maghahambing sa aktuwal na koleksyon at sa opisyal na inaasahang kita.

“Habang tumataas ang presyo at nababawasan ang kayang bilhin ng pamilya, dapat malinaw din kung magkano ang karagdagang nakokolekta ng gobyerno. The public deserves to know whether the government is receiving windfall collections from the same crisis that is causing them hardship,” pahayag ni Legarda.

Kapag natukoy na may malaki o hindi inaasahang karagdagang koleksyon, kailangang magrekomenda ang Department of Finance at Department of Budget and Management ng angkop na tulong. Maaaring kabilang dito ang pansamantalang pagbaba ng buwis sa langis, suporta sa pampublikong transportasyon, tulong sa mga magsasaka at mangingisda, suporta sa pagdadala ng pagkain, o disaster response.

Lumilikha rin ang panukala ng Strategic Petroleum Reserve para sa malalaking pagkaantala sa pambansang suplay ng langis at Government Operational Fuel Reserve upang matiyak na tuloy ang mahahalagang serbisyo ng gobyerno. Pangungunahan ng DOE ang programa, habang magsisilbing fuel-security agent ng Estado ang Philippine National Oil Company.

“Hindi natin dapat ulitin sa susunod na krisis ang parehong paghahanap ng datos, pagtatalo sa batayan ng presyo, at paghahabol ng magkakahiwalay na tugon. We have seen where the gaps lie. This bill puts the information, safeguards, emergency powers, tax accountability, and fuel reserves into one permanent system,” pagtatapos ni Legarda. (30)