With global oil tensions again spilling into the local market, Marikina Rep. Miro Quimbo is pitching a government-backed loan program for petroleum retailers, arguing that it could help cushion the blow on Filipino consumers already reeling from rising pump prices.
Quimbo said the proposal is meant to address the “replacement cost” system used by oil firms, where fuel prices are based not simply on what existing inventory was originally bought for, but on how much it would cost to replenish supplies at current market rates. For consumers, that can mean paying significantly more for fuel that may have been purchased by retailers at lower prices weeks earlier.
According to Quimbo, forcing companies to sell fuel closer to their original acquisition cost may sound appealing on the surface, but it could create even bigger problems. He warned that strict price controls might discourage fuel firms from replenishing their stocks right away, especially if they expect prices to fall, potentially disrupting supply and worsening the situation for motorists and businesses alike.
Instead, he said government intervention should focus on solving what he described as a liquidity issue. Under his proposal, the state could extend loans to fuel companies at reasonable interest rates so they would have enough capital to buy fresh inventory without immediately passing the full burden on to consumers.
“Dito pwedeng pumasok ang gobyerno…since this is a liquidity issue… suggestion namin diyan is kasi pwede naman bumaba the next month eh, bakit hindi muna pautangin ang gas companies ng reasonable rate, interest rate para meron silang pambili,” Quimbo said during a news forum in Quezon City on Saturday.
He added that if global prices ease in the following month, the government could recover its money quickly as firms regain profitability.
“Because oras na bumaba na next month mababayaran tayo kaagad kasi kumita sila eh. So these are things that not to be done or undertaken,” he said.
At the same time, Quimbo maintained that lawmakers would also take a closer look at the pricing behavior of oil companies, particularly amid concerns over what he described as possible “cartel-like” movements in weekly fuel price adjustments. He said industry representatives would be called to explain how their pricing mechanisms work during an upcoming House hearing.
In a separate statement, Quimbo, who heads the Legislative Energy Action Development Council, said the House is moving quickly on a broader package of measures to respond to the fuel crisis. He said lawmakers are preparing both short-term relief and longer-term reforms aimed at shielding the country from recurring shocks in the global oil market, with legislation expected to be ready once Congress resumes session on May 4.
The proposal reflects a growing urgency in government as fuel costs continue to pressure household budgets, transport operators, and businesses, raising the stakes for officials searching for ways to soften the impact without risking supply disruptions.
