MANILA, Philippines — Amid a sharp spike in inflation driven by global oil supply shocks, the House Ad Hoc Committee on Legislative Energy Action and Development (LEAD) approved a substitute bill on Tuesday, May 12, 2026, that would grant the government sweeping powers to manage fuel crises.
The proposed KALINGA Act (Komprehensibong Alalay sa Livelihood, Inflation, Negosyo, at Goods Assistance) aims to move beyond “band-aid” solutions by institutionalizing a permanent framework for national energy emergencies.
Authored by Speaker Faustino “Bojie” Dy III and Majority Leader Ferdinand Alexander “Sandro” Marcos III, the bill seeks to “insulate” the Philippine economy from the ripple effects of spiraling oil prices.
The measure consists of seven key component responses:
- Fuel Price Stabilization: Mechanisms to prevent sudden, extreme price spikes at the pump.
- Energy Supply Security: Enhanced inventory management to ensure a steady supply during global disruptions.
- Targeted Assistance: Data-driven aid for the “poorest of the poor,” transport drivers, farmers, and fisherfolk.
- Logistics Stabilization: Measures to keep the movement of essential goods affordable.
- MSME Relief: Business continuity support for small enterprises facing soaring energy costs.
- Energy Conservation: Long-term strategies to reduce national fuel dependency.
- Flexible Fiscal Measures: Provisions for tax tweaks and regulatory adjustments triggered by specific “oil shock” thresholds.
The bill’s approval follows reports that inflation hit 7.2 percent in April 2026, a three-year high. Economists attribute the surge to an energy crisis sparked by late-February airstrikes in the Middle East, which severely disrupted global supply chains.
- Committee Stance: Marikina Rep. Miro Quimbo, chair of the ad hoc panel, noted that the bill is designed for “relief now, resilience for the future.”
- Government Support: DSWD Secretary Rex Gatchalian expressed full support, highlighting the bill’s reliance on unified databases like PhilSys to ensure aid reaches the correct beneficiaries without leakage.
While the Makabayan bloc previously criticized similar proposals as insufficient, Speaker Dy emphasized that the KALINGA Act is a “direct response to what Filipinos are experiencing on the ground.”
“The real challenge is how we can ensure that the economy and the livelihood of Filipinos will not be easily shaken by the next fuel shock. We want a future where global oil price spikes no longer automatically translate into deeper hardship.” — Speaker Bojie Dy III
Following the panel’s approval, the substitute bill will be transmitted to the Committee on Appropriations for its financial provisions before moving to the House plenary for a second reading. Majority Leader Sandro Marcos expressed hope that the Senate would act with similar “expedition” once the bill is transmitted.