The House of Representatives has advanced the Kalinga bill, designed to mitigate the impact of soaring oil prices, with a recent vote on May 20, 2026.
Key Amendments to the Kalinga Bill
The bill, formally known as House Bill No. 9305, introduces several significant changes aimed at improving the government's responsiveness to oil price shocks. It establishes the Kalinga National Response Council, tasked with coordinating national efforts during energy emergencies.
This bill represents a critical step in addressing immediate economic concerns related to fuel pricing, empowering the executive with necessary resources.
Miro Quimbo, Ways and Means Chairman
- Objective triggers for emergency declarations based on crude oil prices.
- Expanded financial aid for low-income households and small businesses.
- A 30-day moratorium on loans and tuition fees.
The council will include various cabinet members, enhancing its authority to recommend emergency declarations to the president.
New provisions specify that the president can declare a national emergency when Dubai crude oil prices reach $80 per barrel for 30 days or when domestic fuel prices rise by at least 30%.
This approach contrasts with previous legislation, where emergency powers required legislative approval, reflecting a shift towards more proactive governance in economic crises.
The bill also details financial assistance measures, including cash transfers for low-income households and subsidies for essential services, such as transport and food.
Additionally, the revised bill introduces an option to suspend value-added tax (VAT) on fuel for up to 60 days, a change from earlier proposals that primarily focused on excise taxes.
The next step involves a final vote in the House, where it is expected to pass overwhelmingly, although the Senate will need to reconcile its own measures for oil price relief.