The House leadership wants to institutionalize a national protection system that would ensure Filipinos are not left to bear the full burden of another fuel-driven crisis similar to what is currently happening.

For this purpose, House Speaker Faustino "Bojie" Dy III and Majority Leader Sandro Marcos filed House Bill (HB) No. 8834, or the KALINGA Act, which was designed to guarantee fast, targeted, and automatic government response when fuel price shocks begin driving up the cost of living.

More than an emergency assistance measure, the KALINGA Act establishes a national protection framework that allows government to act early, decisively, and in a coordinated manner—before rising fuel costs spiral into widespread increases in fares, food prices, electricity, and other daily expenses.

“Isang galaw lang sa presyo ng langis, lahat tumataas—pamasahe, pagkain, kuryente. Hahanapan ng Kongreso at pamahalaan ng solusyon ang sitwasyon. Sa KALINGA Act, may malinaw na sistema—may trigger, may aksyon, may tulong,” Marcos said in a statement Sunday, April 12.

(One move in oil prices and everything rises—fares, food, electricity. Congress and government will seek solutions to the situation. Under the KALINGA Act, there is a clear system—there’s a trigger, there’s action, there’s aid.)

At the core of the proposal is the KALINGA Program, a whole-of-government response system that is automatically activated once critical warning signs appear, such as sharp increases in fuel prices, extraordinary inflation, low fuel supply levels, or the declaration of a national energy emergency.

“Hindi ito ayuda lang. Ito ay proteksyon. Kapag tumaas ang presyo, automatic ang tulong (This is not just aid. This is protection. When prices rise, assistance is automatic),” the presidential son underscored.

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 vulnerable sectors or beneficiaries include, but are not limited to: low-income households, disadvantaged and underemployed workers, public transport drivers, farmers, fisherfolk, MSMEs, overseas Filipino workers, and other sectors as may be identified by the KALINGA Inter Agency Task Force based on data driven assessment of vulnerability.

The vulnerable sectors refer to individuals, households, and economic groups that are disproportionately affected by fuel driven inflation, price shocks, and supply disruptions, and who have limited or no capacity to absorb increases in the cost of fuel, energy, transportation, and essential goods.

The proposed measure outlines a comprehensive response framework composed of several key components aimed at addressing fuel-driven inflation and ensuring supply stability.

Under the Fuel Price Stabilization Component, the government is mandated to implement measures to stabilize fuel prices, including targeted fuel subsidy programs for the transport, agriculture, fisheries, and logistics sectors; flexible fuel tax adjustments such as the temporary suspension, reduction, or staggered implementation of excise taxes on petroleum products; fuel price smoothing mechanisms; and temporary transport fare support programs, alongside other necessary price interventions. All subsidies are required to be targeted, time-bound, and subject to periodic review to ensure fiscal sustainability.

The Energy Supply, Security, and Inventory Management Component authorizes the government to ensure the availability of oil, fuel, electricity, and other energy products through measures such as entering into government-to-government fuel supply agreements, diversifying import sources, monitoring and enforcing minimum fuel inventory levels, prioritizing allocation for essential sectors, ensuring supply for power generation and critical services, and implementing emergency procurement, distribution, and national contingency planning.

Meanwhile, the Targeted Assistance Component provides for direct support to vulnerable sectors, including cash assistance for minimum wage earners and low-income households, fuel subsidies for public transport drivers, farmers, fisherfolk, and logistics providers, transport assistance for low-income workers, and public transport fare subsidies. All assistance must be time-bound, targeted, and, where practicable, delivered through digital and national targeting systems.

To ensure the continuous supply and stable prices of essential goods, the Essential Goods and Logistics Stabilization Component includes support for transport and distribution, buffer stocking and food supply stabilization, shipping and inter-island logistics assistance, cold chain and storage programs, priority fuel allocation for essential goods transport, and temporary price stabilization measures consistent with existing laws.

The measure also introduces an MSME Energy Relief and Business Continuity Component aimed at preventing business closures and job losses.

This includes targeted energy and fuel subsidies, low-interest loans and credit guarantees, tax payment deferment, regulatory fee relief, incentives for energy efficiency, logistics support, and a moratorium of up to six months on loan interest payments or collections for qualified MSMEs under government financial institutions, without penalties or additional charges. Government loan guarantees may also be provided in lieu of direct subsidies where feasible.

To reduce fuel consumption and stabilize supply, the Energy Conservation and Demand Reduction Component allows the implementation of work-from-home arrangements in government and encouragement in the private sector, compressed workweeks, staggered working hours, carpooling and public transport promotion, reduced fuel use in government agencies, energy conservation programs, speed regulation, and the promotion of alternative fuels and biofuels.

Finally, the Flexible Fiscal and Regulatory Measures Component authorizes the government to implement temporary suspension or reduction of fuel excise taxes and import duties, tax deferments, reduction of regulatory fees, streamlined permitting processes, anti-hoarding and anti-profiteering measures, and price monitoring mechanisms. Any tax suspension or reduction must be subject to prior notification to Congress and will be automatically reviewed within 60 days from implementation.

In a related development, Solid North Party-list Rep. Ching Bernos is prodding the government to use the Philippine Amusement and Gaming Corp.’s (Pagcor) revenues to fund support for vulnerable sectors amid the fuel price crisis.

“Pagcor uses part of its revenues to fund socio-civic programs for the people. As we face another crisis due to oil instability, I hope the government channels these funds towards programs that would soften the blow of the oil crisis on the most vulnerable sectors of society,” Bernos, a member of the House Committee on Games and Amusements, said.

In 2025, Pagcor remitted P66.95 billion as its contribution to nation-building. Of this amount, about P12.77 billion was earmarked to fund socio-civic programs, including those under the Office of the President (OP).

Bernos reckoned that these funds could be used for high-impact, targeted aid to vulnerable sectors such as indigenous peoples, small farmers and fisherfolk, indigent families, women, and students, among others.

“May potensyal na makatulong sa mas maraming Pilipino ang mga pondong ito kung gagamitin sa pagsiguro na may access sa pagkain, emergency income, fuel subsidy, atbp. (These funds have the potential to help more Filipinos if used to ensure access to food, emergency income, fuel subsidies, and more),” the lawmaker said.

By virtue of Presidential Decree (PD) No.1869, the government is entitled to at least 50 percent of Pagcor’s gross gaming revenues.