Senator Loren Legarda is set to file the Bayanihan Power to the People Act, or the so-called Bayanihan 3 Law, which seeks to establish a decisive government framework in addressing the impacts of the global oil crisis on Filipino households and the national economy.

Legarda stressed that Executive Order (EO) No.110 while declared a national energy emergency and outlined measures on conservation, anti-hoarding, and agency coordination, it fell short of providing concrete relief to Filipinos. 

She noted the absence of clear timelines for immediate and medium-term action, the lack of direct consumer price protection, and the continued use of replacement cost pricing by oil companies.

She further emphasized the gaps such as the value-added tax (VAT) being wrongfully imposed on certain electricity charges, private sector cooperation being left voluntary, and funding sources being undefined require urgent legislative intervention.

Legarda noted that price control can only serve as a short-term buffer, not a real solution.

She warns that the nation risks repeatedly choosing between high prices or high subsidies, both of which are unsustainable. Thus, she underscored that the long-term answer was to reduce dependence on imported fuel through electric vehicle transition, renewable energy (RE), and diversification.

“The nation deserves a coordinated, detailed and effective plan that provides protection and relief in the face of this global crisis,” Legarda said.

The proposed bill identifies the necessary powers to enable the executive to steer the country away from dependence on imported fuel, which continues to expose the Philippines to global price volatility and external shocks.

It also seeks to accelerate the transition toward more stable, sustainable, and domestically anchored energy sources, including the rapid development and deployment of RE, energy efficiency measures, and alternative transport systems.

Legarda emphasized that the present challenge must be treated as an opportunity to drive urgent transition and build resilience, just as past crises have spurred innovation and adaptation.

Notably, the Bayanihan 3 Law seeks to address both the immediate impact of the crisis and its inflationary effects.

Among the tools it grants the President are time-bound tax relief measures, including the possible exemption of VAT on basic goods and services to ease the burden on consumers.

At the same time, it introduces emergency revenue measures such as higher taxes on luxury and sin goods, and the imposition of a wealth tax, so that those with greater capacity can help support the government’s response while the crisis is ongoing.

Legarda is set to file the proposed Bayanihan 3 Law in the Senate, with the draft incorporating key findings from the hearings of the Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) Committee.

These inputs are intended to ensure a more coordinated, responsive, and effective framework for relief, recovery, and crisis management.