MANILA – Imposing a price freeze on crude oil amid recent global price surges could backfire, House Ways and Means Committee Chairperson Miro Quimbo warned, saying it could lead to fuel shortages and even higher prices.

“I have never been a fan of price freezing, especially on oil. If we freeze crude at, say, US $120 per barrel and force sellers to sell below that, they will simply stop selling,” Quimbo said in an online press briefing. “If no one sells, we will face rationing and prices will ultimately go up. It would be counter-productive.”

Quimbo noted, however, that the House’s proposed Bayanihan 3 measure to address energy crisis impacts includes provisions to allow price freezes for essential goods during emergency situations. He stressed that oil is treated differently under supply-and-demand principles and is vulnerable to unintended consequences if frozen.

Under the existing Price Act, prices of basic necessities are automatically frozen in certain circumstances, including disasters, emergencies, states of rebellion, martial law, suspension of the writ of habeas corpus, or war declarations. The law defines basic necessities to include rice, bread, fresh meat and fish, cooking oil, sugar, coffee, vegetables, milk, and essential drugs, among others.

Prime commodities, also covered under the law during emergency price controls, include fresh fruits, noodles, processed meats, dairy products not considered basic, construction materials, fertilizers, and non-essential drugs.

Quimbo emphasized that while price freezes may be appropriate for essential goods, applying the same mechanism to crude oil risks reducing supply, creating shortages, and ultimately pushing prices even higher.

The Bayanihan 3 measure is part of ongoing legislative efforts to mitigate the impact of rising fuel costs and other inflationary pressures on Filipino households.