DBM: Calamity fund can cover fuel subsidies amid oil hike

The Department of Budget and Management (DBM) on Tuesday said a portion of the P39.8-billion calamity fund under the 2026 national budget can be used to provide fuel subsidies to affected sectors amid rising fuel prices caused by the Middle East conflict.

During a hearing of the Senate Committee on Finance, DBM Undersecretary Janet Abuel cited a special provision in the 2026 General Appropriations Act (GAA) which allotted P23.4 billion for the National Disaster Risk Reduction and Management (NDRRM) Program.

She said these funds can be used for reconstruction, rehabilitation, repair, aid, relief, and other works or services—including pre-disaster activities—in connection with natural or human-induced calamities, epidemics, crises from armed conflicts or terrorism, and other catastrophes, subject to the President’s approval.

“If we are affected by an international devastation, for example, and maapektuhan tayo (and we will be affected), that can be considered as man-made on our part, as long as there is a declaration,” Abuel said.

The DBM official made the proposal as lawmakers explored measures to help the country mitigate the economic impact of the Middle East conflict.

She noted that declaring a national emergency provides the government with an alternative remedy.

“Another option, subject to compliance with the constitutional requirements for declaring a national emergency, is another route. That would be a longer process because it would require legislation as well from Congress, parang (like the) Bayanihan Act during COVID,” she added.

Senator Sherwin Gatchalian, Senate finance committee chairman, noted that the 2026 calamity fund had been increased to P39.8 billion.

“If ever we will give fuel subsidy, obviously that’s considered relief? In other words, (can it) be used, as worded right now?” Gatchalian asked.

Abuel confirmed, saying that if the calamity fund can be used for relief during local emergencies, it can likewise be accessed during an international crisis.

Gatchalian added: “Kung humaba pa itong disaster ngayon at kailangan magbigay ng fuel subsidies to public utility vehicle drivers, to farmers, to fisherfolk, pwede na ma-access ‘yun because in my opinion, ‘pag tumuloy-tuloy siya ng $100 for the next few months, parang nasa calamity na tayo eh.”

(If this disaster drags on and we need to provide fuel subsidies to PUV drivers, farmers, and fisherfolk, we can access the calamity fund. In my view, if fuel prices keep rising and reach $100 per barrel over the next few months, it would seem like we're already in a calamity.)

Abuel said the DBM has already identified possible sources of funding to address challenges arising from the Middle East conflict.

“Nakakita na po kami sa iba’t ibang agencies based on their PAP (program, activity, and project), which would also include ‘yung ating lump sum, the NDRMM fund,” she said.

(We identified sources from various agencies based on their PAP, which would also include our lump sum, the NDRMM fund.)

On Monday, Senate Deputy Majority Leader Risa Hontiveros called for the passage of a P52.8-billion supplemental budget to address rising oil prices amid heightened tensions in the Middle East.

She cited several possible sources for the supplemental budget, including the P23.4 billion NDRRMF under the 2026 budget.—MCG, GMA Integrated News