Manila: President Ferdinand R. Marcos Jr. has directed the release of PHP20 billion in emergency funds to secure the Philippines' fuel supply as the global oil crisis intensifies due to the ongoing conflict in the Middle East.
According to Philippines News Agency, the Department of Energy will receive the funds through a Special Allotment Release Order and a Notice of Cash Allocation, as stated by the Department of Budget and Management (DBM) on Wednesday.
The DBM confirmed that the budget will be sourced from the Malampaya Gas Fund under the Special Account in the General Fund. The funds will be allocated to the government's Emergency Energy Security Program, which aims to ensure fuel availability, prevent supply shortages, and mitigate the impact of fluctuating global oil prices. The initiative includes strategic procurement of fuel products like diesel, gasoline, and LPG to enhance the national fuel inventory, stabilize pump prices, and maintain operations across critical sectors such as transport, logistics, and agriculture.
The program will be implemented by the Philippine National Oil Company - Exploration Corp. (PNOC-EC), which has commenced procurement activities to swiftly augment the domestic supply. The move comes as geopolitical tensions in the Middle East disrupt global oil production and distribution, posing risks to domestic fuel supply and essential services.
President Marcos signed Executive Order 110 on Tuesday, declaring a state of national energy emergency for a year to stabilize the energy sector. DBM acting Secretary Rolando Toledo emphasized the government's commitment to ensuring fuel availability, moderated prices, and uninterrupted essential services, highlighting the importance of fiscal discipline in utilizing public funds effectively.
Senators have expressed support for the energy emergency declaration, with Senator Loren Legarda advocating for broader measures, such as removing VAT on basic goods and considering a Bayanihan-type law for time-bound powers. Senator Bam Aquino raised concerns about the authority to impose price caps on essential goods and urged the use of over PHP200 billion in funds for targeted aid.
Senator Sherwin Gatchalian commended President Marcos' decision, emphasizing the need for extraordinary measures to cushion the crisis's impact on Filipino households and the economy. He called for a coordinated national contingency plan with specific actions for various crisis scenarios, pledging legislative support for appropriate measures during this challenging time.
