Davao City Representatives Paolo Duterte (1st District) and Omar Duterte (2nd District) have filed a measure seeking to reestablish the Oil Price Stabilization Fund (OPSF), with an initial ₱10 billion allocation, to shield consumers from sudden fuel price hikes.
House Bill 8377, or the Oil Industry Regulation and National Energy Security Act of 2026, proposes amendments to Republic Act 8479, the Downstream Oil Industry Deregulation Act of 1998, which dismantled the OPSF nearly three decades ago.
The lawmakers argued that global oil price surges — such as those triggered by the ongoing conflict involving the U.S., Israel, and Iran — directly affect the cost of goods and services, worsening the burden on ordinary Filipinos.
“It is in this regard that this bill seeks to repeal the Republic Act No. 8479… to reestablish government price control of fuel pump prices and address the negative impact of frequent and abrupt fuel price changes on consumers,” the measure states.
The OPSF would serve as a buffer, absorbing increases in world market prices so oil firms would not pass them on to consumers. The proposed ₱10 billion fund would be sourced from excess collections in ad valorem and import duties on petroleum, incremental dividends from government corporations, and national government savings.
“Fuel is not a luxury; it is the lifeblood of our economy. Uncontrolled surges in oil prices trigger a domino effect, raising the costs of transportation, food, and basic utilities, thereby pushing more Filipinos into poverty,” the Duterte lawmakers explained.
To ensure transparency, the Department of Budget and Management (DBM) would be required to submit monthly reports on OPSF usage and balances to an oversight committee composed of members of both chambers of Congress.
The OPSF was originally abolished in 1998 when the oil industry was deregulated, giving companies the authority to set pump prices independently.