House bill proposes fuel price regulatory board, new oil price stabilization fund

A House member has filed a bill seeking to restore to the government the authority to intervene in fuel pricing, citing the need to protect consumers from sudden spikes in global oil prices.

Manila Representative Joel Chua said House Bill No. 8839, or the proposed “Fuel Price Stabilization and Energy Security Act,” aims to provide the government with mechanisms to address fuel price volatility and supply disruptions.

The proposal includes the creation of a Fuel Regulatory Board, a new Oil Price Stabilization Fund, and a Strategic Fuel Reserve.

“House Bill 8839… returns to the government the power to intervene when fuel prices and supplies are abnormal,” Chua said.

At the core of the measure is a shift away from full deregulation under the Oil Deregulation Law of 1998, which limits direct government intervention in fuel pricing.

Chua said the existing system leaves consumers vulnerable to global market fluctuations.

“Sa kasalukuyang kalakaran kasi, kapag sumirit ang presyo ng langis sa world market, diretso agad ang hagupit nito sa bulsa nating mga Pilipino. Halos walang magawa ang gobyerno,” he said.

(Under the current setup, when global oil prices surge, the impact is immediately felt by Filipino consumers, and the government has little ability to respond.)

Under the bill, a five-member Fuel Regulatory Board would be authorized to set temporary price ceilings, regulate fuel prices, and investigate anti-competitive practices in the oil industry.

The proposed Oil Price Stabilization Fund, meanwhile, is designed to cushion the impact of sudden price hikes.

“Halimbawa lang… if world oil prices suddenly surge and gasoline or diesel prices are projected to rise by P5 per liter, the government can use the fund to soften the blow,” Chua said.

(For example, if global oil prices surge and fuel prices are projected to increase by P5 per liter, the government can use the fund to reduce the impact on consumers.)

The measure also includes the establishment of a Strategic Fuel Reserve, allowing the government to stockpile fuel when global prices are low and release supplies during crises or disruptions.

“Tuwing mura ang presyo ng langis… bibili ang gobyerno ng emergency oil stockpile… maaaring i-release sa panahon ng krisis,” he explained.

(When global oil prices are low, the government can build an emergency stockpile that may be released during crises.)

Under the proposal, the President would have the authority to release reserves upon recommendation of the Fuel Regulatory Board, while the Commission on Audit would oversee transactions related to the fund and reserves.

Chua said the bill aims to balance market dynamics with consumer protection.

“Kapag kontrolado ang biglaang taas ng gasolina at diesel, mas magiging stable ang pamasahe, mas predictable ang presyo ng mga bilihin, at mas protektado ang kabuhayan ng mga Pilipino,” he added.

(If sudden increases in fuel prices are controlled, fares become more stable, prices of goods more predictable, and livelihoods better protected.) –NB, GMA News