MANILA, Philippines — As the Philippines faces its most severe energy crisis in decades, a Senate ad hoc committee has recommended the implementation of a retail price cap and a nationwide fuel rationing program as short-term measures to stabilize the economy.
The preliminary report, released on Wednesday, April 1, 2026, by the Senate PROTECT Committee (Proactive Response and Oversight for Timely and Effective Crisis Strategy), chaired by Senator Sherwin Gatchalian, outlines emergency powers that can be invoked under the current “state of national energy emergency.”
The committee noted that under Section 14 of Republic Act No. 8479 (Downstream Oil Industry Deregulation Act of 1998), the Department of Energy (DOE) has the authority to impose price caps during times of national emergency.
“The exorbitant pump prices being experienced… may necessitate the implementation of extraordinary measures to provide immediate relief,” the report stated. Currently, diesel prices have surged to approximately ₱140 per liter, while gasoline ranges between ₱95 and ₱105 per liter following four consecutive weeks of massive hikes.
To prevent hoarding and extend the country’s existing fuel reserves, the committee also suggested a rationing plan under R.A. No. 7638 (Department of Energy Act of 1992). This would involve:
While the Senate pushes for price controls, broader financial relief is also in the works:
- Excise Tax Suspension: President Ferdinand Marcos Jr. has already signed a bill allowing the suspension of fuel excise taxes (₱10 for gasoline, ₱6 for diesel). However, this can only be triggered once Dubai crude maintains an average above $80 for one month, with the earliest possible date being April 12.
- Bayanihan 3: There are ongoing discussions about crafting a new “Bayanihan” law and a supplemental budget to address the inflationary impact of the Middle East conflict on Filipino households.
The DOE is now tasked with conducting a feasibility study on these measures to ensure that a price cap does not lead to “artificial shortages” or a complete withdrawal of supply from smaller independent oil players.
Critics, however, urge the government to act faster. “The people cannot wait for another two weeks of debate while the price at the pump keeps rising every Tuesday,” said one lawmaker. The full Senate is expected to deliberate on the PROTECT Committee’s final recommendations when session resumes after the Holy Week break.