Councilor Danilo C. Dayanghirang is pushing for the revival of the Oil Price Stabilization Fund (OPSF) or the creation of a similar government mechanism to help protect Filipino consumers and vital economic sectors from sharp and prolonged increases in fuel prices.
Dayanghirang, chairperson of the Committee on Finance, Ways and Means, and Appropriations, proposed a resolution Tuesday urging Congress to pass legislation that would restore the OPSF or establish a comparable system capable of cushioning the impact of volatile fuel prices on households, public transportation, agriculture and businesses.
The proposal comes amid continued fluctuations in global crude oil prices and foreign exchange rates, which have contributed to unpredictable movements in domestic pump prices. These changes have placed additional financial pressure on families, workers, farmers, fisherfolk, transport operators and businesses.
Dayanghirang said petroleum products remain critical to nearly every part of the economy, with fuel costs directly affecting transportation, electricity generation, food production, manufacturing and logistics.
He noted that rising fuel prices can also push up the cost of basic goods and services, intensifying inflation and weakening the purchasing power of ordinary Filipinos.
“The measure seeks to bring back a mechanism similar to the OPSF previously maintained by the national government, which was intended to cushion consumers from sudden oil price increases,” Dayanghirang said.
The OPSF was created to minimize frequent changes in domestic petroleum prices caused by fluctuations in global crude oil prices and foreign exchange rates. It operated under a government-administered system before the downstream oil industry was deregulated and the fund was eventually discontinued.
Dayanghirang stressed that any new stabilization mechanism should be modernized and subject to strict transparency and auditing safeguards. He said the system should provide temporary assistance during extraordinary price spikes without disrupting competition in the deregulated downstream oil industry.
He added that a properly designed fund could help shield vulnerable sectors while contributing to broader economic stability.
The proposed resolution states that restoring an oil price stabilization mechanism could help preserve economic stability, protect vulnerable sectors, sustain public transportation, support agricultural productivity and ease inflationary pressures affecting the country.
Copies of the proposed resolution would be furnished to the Office of the President, Senate, House of Representatives, Department of Energy, Department of Finance, National Economic and Development Authority and other concerned government agencies for appropriate action.
For Dayanghirang, the proposal is ultimately aimed at giving Filipino consumers a stronger buffer against fuel price shocks and their wider economic consequences—from the cost of commuting to work to the price of food and other essentials.
