Gov't Plans to use P20-B Malampaya Fund for Middle East conflict response

Budget Secretary Rolando Toledo said Tuesday that the Marcos administration is looking to use P20 billion from the Malampaya natural gas fund to address the impacts of the Middle East conflict in  the country.

During the Senate’s Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) hearing, Toledo said that the Executive department initially identified possible funding sources for the crisis response, amounting to P210 billion.

Of the amount, he said P10 billion were continuing appropriations from the 2025 national budget, while P200 billion came from the 2026 General Appropriations Act (GAA). 

“In addition, just last Saturday, we spoke with Secretary [Sharon] Garin… We are looking at tapping the Malampaya fund of P20 billion. The request is already with us. We will release that for the back purchases of oil,” Toledo said. 

“So I think it’s not a problem now na magkakaroon tayo ng (that we’ll have a) shortfall because Secretary Garin already requested to us how do release now the P20 billion fund, charging it from the Malampaya,” he added. 

With the addition of the P20 billion from the Malampaya fund, the Budget chief said that the government is now looking at a total of P230 billion to address the problem. 

Of this, he said P63.8 billion will be earmarked for the Department of Social Welfare and Development’s (DSWD) protective services for individuals and families in difficult circumstances program; P4.2 billion for the Department of Migrant Workers (DMW); P2 billion for the Department of Trade and Industry’s (DTI) budget for MSMEs, negosyo centers, and others; and P1.2 billion for the Department of Foreign Affairs’ (DFA) assistance to nationals, and legal assistance funds, among others. 

He said a portion will also be allocated for fuel subsidy assistance to farmers and the transport sector.

The Malampaya fund was created as a special fund under Presidential Decree No. 910, issued by then-president Ferdinand Marcos in 1976. It is initially used to finance energy resource development and exploitation programs and projects of the government. 

Earlier on Tuesday, Energy Secretary Sharon Garin said the Philippine government is setting aside P20 billion to beef up the country’s buffer stock of diesel amid supply uncertainties due to the ongoing Middle East crisis. 

Garin said the Philippine National Oil Company (PNOC) is targeting to secure a maximum of two million barrels of diesel buffer stock, which will cost about P20 billion. This diesel buffer, she added, would add another 10 days’ worth of fuel supply for the country. —VAL, GMA Integrated News