House leaders' KALINGA Act seeks fast gov’t response amid oil price shocks

House Speaker Faustino “Bojie” Dy III and House Majority Leader Ferdinand Alexander “Sandro” Marcos have filed a bill seeking to provide fast and automatic government response during fuel price hikes. 

House Bill No. 8834, or the KALINGA Act, seeks to create a nationwide safety net designed for proactive government intervention. The proposed measure aims to stabilize fuel costs before they can trigger a domino effect of rising prices for public transport, groceries, utilities, and other essential living expenses.

“Isang galaw lang sa presyo ng langis, lahat tumataas—pamasahe, pagkain, kuryente. Hahanapan ng Kongreso at pamahalaan ng solusyon ang sitwasyon,” Marcos said in a statement. “Sa KALINGA Act, may malinaw na sistema—may trigger, may aksyon, may tulong.”

(Just one movement in oil prices and everything goes up—fares, food, electricity. Congress and the government will find a solution to this situation…With the KALINGA Act, there is a clear system—there is a trigger, there is action, and there is assistance.) 

But the lawmaker and presidential son clarified that the KALINGA Program is not meant as an aid. 

“Ito ay proteksyon…Kapag tumaas ang presyo, automatic ang tulong,” said Marcos. 

(This is protection... When prices go up, the assistance is automatic.) 

The KALINGA Program shall include the following components:

1. Fuel Price Stabilization Component
2. Energy Supply, Security, and Inventory Management Component
3. Targeted Assistance Component
4. Essential Goods and Logistics Stabilization Component
5. Micro, small and medium enterprises (MSMEs) Energy Relief and Business Continuity Component
6. Energy Conservation and Demand Reduction Component
7. Flexible Fiscal and Regulatory Measures Component

The target beneficiaries target vulnerable sectors. This includes low-wage families, underemployed individuals, and public utility drivers, as well as those in the agricultural and fishing sectors.

The framework also extends to micro, small, and medium enterprises and overseas Filipino workers . Furthermore, the KALINGA Inter-Agency Task Force has the authority to include additional groups based on objective, data-driven assessments of who is most susceptible to economic shocks.

“The proposed measure provides for automatic trigger mechanisms that will guide the activation or expansion of the KALINGA Program, including when global oil prices—particularly the average Dubai crude oil price based on the Mean of Platts Singapore (MOPS)—exceed market thresholds,” the statement read. 

The measure grants the President emergency powers to execute the KALINGA Program, allowing for the realignment and augmentation of national budget funds as permitted by Article VI, Section 25 of the 1987 Constitution.

“Any suspension or reduction of taxes must be subject to prior notification to Congress and will be automatically reviewed within 60 days from implementation. The emergency powers granted under the measure shall automatically expire 60 days after the law takes effect, unless extended by a joint resolution of Congress,” the statement added. 

It can be recalled that President Ferdinand Marcos Jr. earlier signed into law the measure giving him emergency power to suspend or reduce the excise tax rate on fuel amid the soaring fuel prices brought by the ongoing Middle East tensions. 

The newly enacted law provides that any suspension or reduction on petroleum products shall be effective for a period not exceeding three months.  The power, however, shall be exercised only until December 31, 2028. 

The President also declared a state of national energy emergency and ordered the adoption of a Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) for affected sectors. —Vince Angelo Ferreras/RF, GMA News