Marikina city: The proposed Kalinga Act should be understood as a national crisis-response playbook against fuel price shocks, not merely as another ayuda (assistance) program because its larger purpose is to give the government a predictable system for protecting consumers, transport workers, farmers, fisherfolk, businesses, and ordinary households whenever global oil prices spike, Marikina City Rep. Miro Quimbo said Monday.
According to Philippines News Agency, in a press conference, the chair of the House Committee on Ways and Means and overall chair of the multi-panel committee that heard the measure, said the proposal backed by Speaker Faustino 'Bojie' Dy III and Majority Leader Ferdinand Alexander 'Sandro' Marcos was designed to replace scattered, improvised, and politicized responses with a standing framework that the government can activate when fuel crises threaten the economy.
'It is designed to reduce uncertainty, one of the biggest drivers of inflation during periods of economic disruption. And more importantly, what it does is it gives businessmen and the economy confidence,' Quimbo said.
The proposed KALINGA Act seeks to establish a permanent government framework to respond to oil price shocks, protect consumers from rising prices, and help maintain economic stability.
Quimbo said the measure's biggest impact is that it bolsters confidence among businesses, investors, and consumers in the government's capacity to act when global fuel prices surge.
'Kapag alam ng ekonomiya na ang gobyerno ay merong framework how to respond, mas nawawala ang uncertainty (When the economy knows that the government has a framework on how to respond, uncertainty disappears more). And uncertainty is the number one driver of increase in prices of commodities,' he pointed out.
'So 'yun ang pinakamabigat na epekto ng batas na ito kaya kinakailangan dahil (So, that's the biggest effect of this law, this is needed because) it really brings confidence so that people who participate in our economy, especially businessmen, alam nila na hindi sila dapat mag-panic (they know that they don't need to panic),' he added.
He said that confidence stems from the bill's creation of a permanent playbook that government agencies can immediately activate whenever oil prices spike.
The lawmaker said the country can no longer afford to devise a new response every time a fuel crisis emerges. Instead, the measure provides the government with a ready-made framework and a clear set of actions that can be implemented immediately during periods of oil price volatility.
The framework is intended to prevent fuel price shocks from spilling over into the broader economy and driving up the prices of basic goods. The bill also seeks to depoliticize emergency assistance by creating predetermined beneficiary lists and ensuring that aid reaches sectors most directly affected by rising fuel prices, including transportation workers, farmers, fisherfolk, and other energy-dependent industries.
In the long term, the KALINGA Act aims to reduce the country's dependence on imported oil through incentives for renewable energy projects and electric vehicle adoption. Quimbo said the measure includes incentives for companies that adopt solar and other renewable energy technologies, support for employers that help workers acquire electric vehicles, and policies encouraging government agencies to transition their fleets to electric-powered vehicles.
'The ultimate goal is a more resilient economy, one that can withstand future oil crises without causing widespread inflation, uncertainty, and disruption,' he said.
