MANILA – President Ferdinand R. Marcos Jr. has ordered the release of PHP20 billion in emergency fund to ensure the country has an adequate fuel supply amid the global oil crisis brought about by the ongoing conflict in the Middle East.
The Department of Energy will receive the emergency fund through a Special Allotment Release Order and a Notice of Cash Allocation issued on Tuesday, the Department of Budget and Management (DBM) said in a statement on Wednesday.
The DBM said the approved budget will be sourced from the Malampaya Gas Fund under the Special Account in the General Fund.
“The funding will be charged against the Malampaya Gas Fund, ensuring that resources are readily available for urgent national energy security needs without disrupting other priority programs,” it said.
The PHP20 billion will be tapped for the implementation of the government’s Emergency Energy Security Program aimed at ensuring fuel availability, preventing supply shortage, and mitigating the impact of volatile global oil prices.
It will fund the strategic procurement of fuel products, including diesel, gasoline, and LPG, in an effort to boost national fuel inventory, stabilize pump prices, and ensure uninterrupted operations across transport, logistics, agriculture, emergency response, and other critical sectors.
The DBM said the program will be implemented by the Philippine National Oil Company –Exploration Corp. (PNOC-EC), which has already initiated procurement activities to immediately augment domestic supply.
“As global uncertainties continue to affect energy markets, the Marcos administration is taking a firm and proactive stance – ensuring that the Philippines remains resilient, prepared, and protected,” it said.
The latest move comes amid escalating geopolitical tensions in the Middle East that have disrupted global oil production and distribution, posing serious risks to domestic fuel supply and the continuity of essential services.
Marcos on Tuesday signed Executive Order 110, declaring a state of national energy emergency for a year to stabilize the country’s energy sector.
DBM acting Secretary Rolando Toledo said the government would ensure that the fuel remains available, prices are moderated, and essential services are unhampered.
“Every peso we release here is meant to keep the economy moving, keep goods flowing, and keep services running. This is what fiscal discipline looks like – using public funds where they matter most, at the time they are needed most,” Toledo said.
Meanwhile, senators on Wednesday welcomed Marcos' energy emergency declaration but pressed for broader powers and concrete measures to curb rising prices.
Senator Loren Legarda called for immediate action, proposing to remove VAT on basic goods, fuel and some electricity charges, and is considering a Bayanihan-type law for time-bound powers.
“Ngayon, kinakailangan ang pangkalahatang aksyon ng pamahalaan (Now, what is needed is a whole-of-government action…),” she said.
But Senator Bam Aquino expressed his concern that the move may lack authority to impose price caps on essential goods and pushed for a broader emergency declaration.
“Baka hindi kasama dito iyong price control… puwedeng lagyan ng price cap (It appears price control may not be included… price caps can be imposed),” he said.
Aquino also urged the use of over PHP200 billion in funds for targeted aid. (Wilnard Bacelonia/PNA)