Senate Office of the Secretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) APR -7 P1:57 First Regular Session RECEIVED BY: SENATE 2026 S. No. - Introduced by Senator Robinhood Padilla AN ACT ESTABLISHING THE EMERGENCY OIL PRICE STABILIZATION FUND, REPEALING FOR THE PURPOSE REPUBLIC ACT NO. 8479, OTHERWISE KNOWN AS THE "DOWNSTREAM OIL INDUSTRY DEREGULATION ACT OF 1998" AND APPROPRIATING FUNDS THEREFOR EXPLANATORY NOTE The Philippines remains highly vulnerable to fluctuations in global oil prices due to its heavy dependence on imported petroleum. In recent years, geopolitical tensions, supply disruptions, and foreign exchange volatility have led to sharp and frequent increases in domestic fuel prices, placing a significant burden on Filipino consumers and driving inflation across essential goods and services. Republic Act No. 8479, or the "Downstream Oil Industry Deregulation Act" of 1998, was enacted to promote competition and efficiency in the oil sector. However, experience has shown that in times of global crisis, a fully deregulated regime limits the State's ability to effectively cushion the impact of sudden and substantial price increases. As a result, Filipino households, transport operators, and key industries are left exposed to external shocks beyond their control. This measure seeks to establish the Emergency Oil Price Stabilization Fund (EOPSF) as a targeted and responsive mechanism to mitigate the impact of extraordinary oil price spikes. By providing temporary financial support to stabilize pump prices under clearly defined conditions, the proposed fund aims to protect consumers while maintaining market functionality.
Unlike the previous stabilization mechanism, this bill introduces safeguards to ensure fiscal discipline, transparency, and accountability, including a defined price- trigger mechanism, limits on allowable returns, and strict auditing requirements. It also allows for complementary targeted subsidies to assist the most vulnerable sectors without resorting to broad and unsustainable interventions. Ultimately, this measure seeks to strike a balance between market principles and the State's duty to protect public welfare, ensuring that the Filipino people are not left defenseless against the volatility of the global oil market. In view of the foregoing, the immediate passage of this bill is earnestly sought. Sepator
Senate Office of the Secretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) 26 APR -7 P1:57 First Regular Session ) RECEIVED BY: SENATE 2026 S. No. - Introduced by Senator Robinhood Padilla AN ACT ESTABLISHING THE EMERGENCY OIL PRICE STABILIZATION FUND, REPEALING FOR THE PURPOSE REPUBLIC ACT NO. 8479, OTHERWISE KNOWN AS THE "DOWNSTREAM OIL INDUSTRY DEREGULATION ACT OF 1998" AND APPROPRIATING FUNDS THEREFOR Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the "Emergency Oil Price
Stabilization Act."
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to
ensure a continuous, adequate, and reliable supply of petroleum products at fair and reasonable prices. Recognizing that petroleum is a commodity imbued with public 6 interest, the State shall exercise its regulatory authority over the downstream oil 7 industry to safeguard consumers from the adverse effects of global market volatility, 8 foreign exchange fluctuations, and geopolitical uncertainties.
SEC. 3. Establishment of the Emergency Oil Price Stabilization Fund. - The
Emergency Oil Price Stabilization Fund (EOPSF) is hereby established to support all Filipinos and help maintain and stabilize oil prices whenever feasible, at prevailing reasonable retail/pump price level. The EOPS shall be deposited in the National Treasury and administered by the Office of the President. The administration, 14 utilization, and disposition of the EOPS herein shall be subject to the audit jurisdiction
1 of the Commission on Audit (COA) which shall promulgate the necessary accounting 2 and auditing rules and regulations to carry out the provisions of this Act. The government may likewise provide targeted subsidies or other similar 4 support mechanisms complementary to the EOPSF.
SEC. 4. Application. - Application of the EOPS shall be subject to the following
6 conditions: a. That the EOPSF shall be used to reimburse the oil companies for: i. Cost increases of imported crude oil and finished petroleum products resulting from foreign exchange rate adjustments and/or increases in world market prices of crude oil; ii. Cost under recovery incurred as a result of fuel oil sales to the National Power Corporation; and iii. Other cost under recoveries incurred as may be finally decided by the Supreme Court; b. That the return on investment of the oil companies does not exceed twelve percent (12%); and c. That no amount of the EOPS shall be used to pay any oil company which has an outstanding obligation to the Philippine Government, or any of its branches, agencies, or instrumentalities, without said obligation being offset first, subject to the requirements of compensation or offset under the Civil Code of the Philippines.
SEC. 5. Automatic Price-Trigger Mechanism. - The use of the EOPS shall be
automatically triggered only when the international benchmark price of crude oil, based on the Brent crude oil index, reaches or exceeds Eighty United States Dollars (US$80.00) per barrel for a continuous period of five (5) trading days.
Upon the occurrence of such trigger, the Department of Budget and 2 Management (DBM), in coordination with the Department of Finance (DOF), and the 3 Department of Energy (DOE) shall immediately apply the EOPSF. The DOE shall regularly monitor global oil market conditions and publish weekly 5 reports on Brent crude oil price movements.
SEC. 6. Appropriations. - The amount of Ten Billion Pesos
7 (Php10,000,000,000.00) is hereby appropriated for this purpose and shall be sourced 8 from any available current year appropriations and savings of the National 9 Government. Any claims against the EOPS in excess of Ten Billion Pesos (Php10,000,000,000.00) shall be subject to a supplemental budget to be passed by Congress.
SEC. 7. Monitoring Compliance. - The DBM shall, within ten (10) days after the
13 end of each month, submit to Congress a monthly report on the releases to each oil company and outstanding balance of the EOPSF.
SEC. 8. Implementing Rules and Regulations. - The DBM, DOF and the DOE
16 shall promulgate the necessary rules and regulations to implement this Act within 17 ninety (90) days from its effectivity.
SEC. 9. Separability Clause. - If any provision of this Act is declared
unconstitutional, the remainder hereof not otherwise affected shall remain in full force and effect.
SEC. 10. Repealing Clause. - All other laws, presidential decrees, executive
22 orders, letters of instruction, proclamations, administrative orders, rules or regulations that are inconsistent with this Act are hereby repealed, amended, or modified accordingly.
SEC. 11. Effectivity Clause. - This Act shall take effect after fifteen (15) days
following its publication in the Official Gazette or in a newspaper of general circulation. Approved,