MANILA 3rd District Rep. Joel Chua filed a bill returning to the state the power to intervene when fuel prices swing sharply in the world market.
House Bill (HB) 8839, or the proposed “Fuel Price Stabilization and Energy Security Act,” seeks to establish a Fuel Regulatory Board, create a new Oil Price Stabilization Fund and build a strategic fuel reserve to give the National Government a working set of tools during fuel emergencies.
“HB 8839 effectively discards provisions of the Oil Deregulation Law of 1998 and returns to the government the power to intervene when fuel prices and supplies are abnormal,” Chua said.
At the center of the measure is a policy shift that gives the National Government authority to temper sudden spikes in gasoline and diesel prices before these spill over into fares, food costs, and household expenses.
The bill proposes a five-member Fuel Regulatory Board composed of a chairperson, two experts in energy economics, petroleum engineering, or energy policy, one consumer sector representative and a transport sector representative.
Under the proposal, the board will have the power to regulate fuel prices, impose temporary price bands or price ceilings and investigate and curb anti-competitive practices in the industry.
A second pillar of the measure is the Oil Price Stabilization Fund, designed to soften the immediate impact of global oil shocks on domestic pump prices without reviving the defects of the old fund.
“If world oil prices suddenly surge and gasoline or diesel prices are projected to rise by P5 per liter, the government can use the Oil Price Stabilization Fund to soften the blow, so motorists may only feel a smaller increase or no increase at all. The intervention is temporary and ends once prices normalize,” Chua said.
Chua said the practical effect of that intervention would be felt not only by motorists, but across the wider economy where fuel prices quickly affect fares, goods and livelihoods.
The bill also proposes a strategic fuel reserve that the National Government may build when global oil prices are relatively low, so that stockpiled fuel can later be released when prices surge or supply is disrupted.
Under the proposal, the authority to release reserves rests with the President upon the recommendation of the Fuel Regulatory Board. The Commission on Audit will audit transactions involving the stabilization fund and the petroleum reserve.
“The broader point of the bill is that the country should not remain hostage to external markets without a working emergency cushion and a government capable of acting decisively when volatility hits,” Chua said.
He said HB 8839 marks a clear break from the decades-old Oil Deregulation Law by moving away from full deregulation and toward a policy built around consumer protection, economic stability, and energy security. / FROM PNA
