Senator Loren Legarda announced plans to file a new measure, the “Bayanihan Power to the People Act,” aimed at creating a comprehensive government framework to cushion the impact of surging oil prices caused by the conflict in the Middle East.
Legarda said the proposed measure would provide coordinated relief mechanisms as global supply disruptions continue to drive up energy costs.
She argued that Executive Order No. 110, which declared a state of national energy emergency, lacked concrete provisions to directly ease the burden on ordinary consumers.
“The nation deserves a coordinated, detailed and effective plan that provides protection and relief in the face of this global crisis,” Legarda said.
The senator highlighted gaps in current policies, including the absence of clear timelines, lack of direct price protection, continued reliance on replacement cost pricing by oil firms, and unclear funding sources for government programs.
Her proposal includes temporary price controls as a buffer, time-bound tax relief such as VAT exemptions on basic goods and services, and emergency revenue measures like higher taxes on luxury and sin products during crisis periods.
Legarda also questioned why essential commodities such as sardines and noodles remain subject to the 12% VAT, the same rate applied to luxury items.
The bill would follow the model of earlier Bayanihan laws enacted during the COVID-19 pandemic, which provided emergency assistance and supported economic recovery.