Resilience and Economic Lifeline to Individuals and Enterprises in the Fuel and Energy Crisis

Senate Office of the Secretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES 26 APR -8 P3:09 First Regular Session SENATE RECEIVED I 2032 S. No. _ Introduced by Senator MARK A. VILLAR AN ACT PROVIDING RELIEF AND RECOVERY INTERVENTIONS TO LOW-INCOME EARNERS, MINIMUM WAGE EARNERS, SELF-EARNING INDIVIDUALS, AND MICRO, SMALL, AND MEDIUM ENTERPRISES AMID THE NATIONAL ENERGY EMERGENCY EXPLANATORY NOTE Under the 1987 Constitution, the State promotes a just and dynamic social order that ensures the nation's prosperity and independence and frees the people from poverty through policies that provide adequate social services and promote social justice.1 In late February 2026, Operation Epic Fury, a joint military operation by the United States of America and the State of Israel, was launched against the Islamic Republic of Iran, triggering another multi-front conflict in the Middle East that is presently causing massive loss of life. In retaliation, the Iranian Revolutionary Guard blocked passage through the Strait of Hormuz, the world's most vital export route, through which one-fifth of global oil and gas passes, resulting in significant disruptions in global energy markets. This has caused disastrous aftershocks in the Philippine energy sector, which has seen unceasing price hikes for petroleum products. Before the conflict, the price of gasoline was about Php35.00 to Php37.71 per liter, and by the end of March 2026, it rose to Php84.00 to Php101.20. Over the same periods, diesel prices rose from 1 Const., art. II, sec. 9.

Php48.00 to Php65.39 per liter to Php119.40 to Php140.20, and kerosene from Php77.40 to Php98.89 per liter to Php140.00 to Php166.79.2 Recognizing these developments, the President issued Executive Order No. 110, Series of 2026, declaring a state of national energy emergency due to volatility in global energy markets, disruptions in supply chains, and sustained increases in oil prices. Meanwhile, the Bangko Sentral ng Pilipinas has cautioned that significant surges in crude oil prices can generate secondary economic effects, including sharp increases in transport and commodity prices. This places considerable financial strain on vulnerable sectors whose incomes are either unstable or insufficient to keep up with rising costs, such as minimum wage earners (MWES), self-earning individuals (SEIs), and low-income households. Moreover, rising fuel prices raise operating costs that threaten business sustainability and worker retention, with Micro, Small, and Medium Enterprises (MSMEs), which account for about 1.2 million businesses or 99% of enterprises in the Philippines, being particularly vulnerable. Thus, this measure seeks to provide different targeted relief and recovery interventions for low-income earners, MWEs, SEIs, and MSMEs during the period of the national energy emergency. These include mandating the grant of grace periods on rent, loan restructuring without penalties or additional charges, extensions of statutory deadlines, and access to low-interest credit accommodations to ease the economic burden on vulnerable sectors, preserve livelihoods, and promote resilience amid external shocks affecting the country's energy security. In light of the foregoing, the passage of this bill is earnestly sought. MARK A. VILLAR ROC 2 Ted Cordero, "How much have fuel prices increased since the Middle East war," GMA News Online, Apr. 2026 <https://www.gmanetwork.com/news/money/economy/982088/pump-price-increase-middle-east-war /story/> .

Senate Difite of the Secretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) 26 APR -8 P 3:09 First Regular Session SENATE RECEIVED B 2032 S. No. _ Introduced by Senator MARK A. VILLAR AN ACT PROVIDING RELIEF AND RECOVERY INTERVENTIONS TO LOW-INCOME EARNERS, MINIMUM WAGE EARNERS, SELF-EARNING INDIVIDUALS, AND MICRO, SMALL, AND MEDIUM ENTERPRISES AMID THE NATIONAL ENERGY EMERGENCY Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: Section. Short Tit/e. - This Act shall be known as the "Resilience and Economic 2 Lifeline to Individuals and Enterprises in the Fuel and Energy Crisis (RELIEF) Act."

Sec. 2. Declaration of Policy. - It is a declared policy of the State to promote

4 a just and dynamic social order that frees the people from poverty through policies 5 that provide adequate social services and social justice in all phases of national 6 development. The State hereby affirms Executive Order No. 110, Series of 2026, which 8 declares a state of national energy emergency in the Philippines due to the conflict in the Middle East involving the United States of America, the State of Israel, and the Islamic Republic of Iran that created uncertainty in global energy markets, severe 11 disruptions in supply chains, and significant volatility and upward pressure on international oil prices, thereby posing a threat to the country's energy security. Recognizing that the national energy crisis disproportionately affects indigents, their families, and stunts the growth, development, and viability of Micro, Small, and Medium Enterprises (MSMEs), there is an urgent need to provide immediate relief and recovery interventions that promote and protect their welfare. ]

Sec. 3. Coverage. - This Act shall cover the following beneficiaries:

(a) All MSMEs as defined under Republic Act No. 6977 or the "Magna Carta for 3 Micro, Small and Medium Enterprises," as amended, and other related laws, rules, or 4 regulations; (b) Minimum Wage Earners or workers in the private sector paid the statutory 6 minimum wage, or an employee in the public sector with compensation income of 7 not more than the statutory minimum wage in the sector where he or she is assigned; (c) Self-Earning Individuals or those who independently provide services or 9 sell goods as a means of livelihood without being engaged in an employer-employee 10 relationship, such as but not limited to, service providers such as flower arrangers, 11 laborers, barbers, beauticians, photographers, and the like, sari-sari store owners, 12 and Public Utility Vehicle Drivers and Conductors; and (d) Low-Income Earners or individuals whose income from economic activities, either in the formal or informal sector, is insufficient to cover living expenses or basic needs. For purposes of this Act, this includes those with unstable incomes and residents in rural areas often engaged in agriculture or informal sectors, who are susceptible to economic shocks and disasters. No beneficiary shall be classified under more than one category: Provided, 19 That, individuals operating an MSME who derive their income solely from such enterprise shall be considered as Self-Earning Individuals.

Sec. 4. Reliefs and Recovery Interventions for Low-income Earners, Minimum

Wage Earners, Self-Earning Individuals, and Micro, Small, and Medium Enterprises. - 23 All beneficiaries under Section 3 hereof shall be entitled to the following reliefs and recovery interventions: (a) To be provided with a minimum of thirty (30)-day grace period on residential and business-related rents falling due within the period of national energy emergency without incurring interests, penalties, fees, and other charges; (b) Notwithstanding any existing law, rule, or regulation issued by the Bangko Sentral ng Pilipinas, to be granted a loan restructuring program for all existing loans as of the effectivity of this Act, including but not limited to salary, personal, housing, and motor vehicle loans, as well as credit card payments, falling due within the period of the national energy emergency without incurring interests, penalties, fees, or other

1 charges from all banks, quasi-banks, financial companies, lending companies, and 2 other financial institutions, both public and private, including the Government Service 3 Insurance System (GSIS), the Social Security System (SSS), and the Home 4 Development Mutual Fund (Pag-IBIG Fund): Provided, That persons with multiple 5 loans shall be granted loan restructuring for every loan; (c) To request for and be granted an extension of statutory deadlines and 7 timelines for the filing and submission of any document, the payment of taxes, fees, 8 and other charges required by law, rule, or regulation; and (d) To be provided with credit accommodations with low interest, payable 10 within three (3) years: Provided, That such credit accommodations shall not require 11 any collateral if the loan does not exceed Three million pesos (Php3,000,000.00);

Sec. 5. Penalties. - Any person who willfully and without any justifiable reason

refuses to provide the reliefs and recovery interventions in the immediately preceding section shall be penalized with a fine of not less than Fifty thousand pesos (Php50,000.00) but not more than One hundred thousand pesos (Php100,000.00) at the discretion of the court.

Sec. 6. Reports to the Proactive Response and Oversight for Timely and

Effective Crisis Strategy (PROTECT) Committee. - Periodic reports shall be submitted by the concerned instrumentalities and entities to the PROTECT Committee of the Philippine Senate.

Sec. 7. Separability Clause. - If any provision of this Act is declared

unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

Sec. 8. Repealing Clause. - All laws, presidential decrees, executive orders,

letters of instruction, and administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified.

Sec. 9. Effectivity. - This Act shall be in full force and effect until the President

declares that the national energy emergency under Executive Order No. 110, Series of 2026, shall have ceased. This Act shall take effect immediately (15) days upon its publication in the Official Gazette or in a newspaper of general circulation. Approved,