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FOURTEENTH CONGRESS OF THE REPUBLIC ) 
Second Regular Session 
OF THE PHILIPPINES 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
As the international community continues to plunge into economic depression, our 
government should engage in a two-pronged effort in order to survive such phenomenon. First, 
we must maintain our economic viability and second, we must ensure that the effects to our 
citizens are minimized. 
Our country is dependent on certain commodities, such as oil and petroleum products, 
which are essential to the functioning of our economy and to the pnblic health, safety and 
welfare. A shortage or threatened shortage or increase in the price of such commodities can 
significantly injure or threaten our economy or public health, safety or welfare, thereby 
endangering the national security. 
Some suppliers of these essential commodities can use abnormal market disruptions, 
including unexpected changes in weather conditions, acts of nature, civil disorders, war or other 
military actions, catastrophic loss of an energy source or other extraordinary adverse 
circumstances, to profiteer in these essential products, even when these actions may undermine 
our economy or otherwise threaten public health, safety and welfare. 
Existing laws as presently enforced do not sufficiently control such profiteering in 
emergency situations. Profiteering can occur and injure our economy even in the absence of a 
provable violation of the antitrust or .unfair trade practice laws. We need to discourage such 
practice and punish these economic saboteurs. 
We also need to help our citizens to properly anticipate and prepare to weather out 
economic emergencies by keeping the prices of basic commodities stable thereby allowing them 
to maximize their limited resources. 


This bill seeks to give the President limited power to declare a state of economic 
emergency and punish profiteers from unduly injuring our country by unduly capitalizing on 
abnormal market disruptions. 
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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
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Second Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
AN ACT 
TO PROTECT THE NATIONAL SECURITY BY PROHIBITING PROFITEERING OF 
ESSENTIAL COMMODITIES DURING PERIODS OF NATIONAL EMERGENCY 
Be it enacted by the Senate and the House of representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the “National Emergency Anti- 
profiteering Act of 2009.” 
SECTION 2. Definition. -For purposes of this Act, the term - 
A. National economic emergency - means, as determined by the President, an abnormal 
market disruption (whether actual or imminently threatened) resulting from 
extraordinary weather conditions, acts of nature, catastrophic failure of a source of 
energy, strike, civil disorder, war or other military action, or national emergency, 
that- 
1. causes an actual or threatened shortage, or an actual or threatened increase in 
the price of an essential commodity, and 
2. is likely to significantly injure the economy of the Philippines or the public 
health, safety or welfare. 
When the President declares a national economic emergency, he shall designate the 
essential commodities with respect to which that national economic emergency exists. 
Notice of the President‘s determination that a national economic emergency exists and 
his designation of the essential commodities with respect to which that national 
economic emergency exists shall be given by immediate publication of a Presidential 
proclamation. 
B. Essential commodity - is - 
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1. crude oil, propane, gasoline, diesel fuel, kerosene, home heating oil, aviation 
fuel, or other petroleum distillate, or 
2. a commodity that the President determines to be a commodity- 
a. of significant importance to the Philippine economy, or 
b. vital or necessary to the public health, safety or welfare, a disruption 
in the supply, or sudden increase in the price, of which is likely to 
significantly injure the economy of the Philppines or public health, 
safety or welfare, and thereby threaten the national security. Notice 
of such determination shall be given by publication of a Presidential 
proclamation. 
C. Listed essential commodity - means any essential commodity with respect to which 
the President has designated that a national economic emergency exists. 
D. Profiteer - means to offer for sale, sell, transport, or deliver an essential commodity at 
an excessive price, or to place excessive restrictions or conditions upon the sale, 
delivery or transportation of an essential commodity. 
E. Excessive price - is one that is not justified by the seller's actual costs of acquiring, 
producing, selling, transporting, and delivering the actual product sold, plus a 
reasonable profit. In calculating the seller's actual costs, no allowance shall be made 
for the replacement costs of an essential commodity if the seller is reasonably assured 
of recouping the replacement costs as a part of the price of subsequent sales of an 
essential commodity. It shall be prima facie evidence of an excessive price that the 
increase in the seller's price for a listed essential commodity during a national 
economic emergency exceeds the increase in the seller's actual costs for actual 
product sold. 
SECTION 3. Prohibited Act. - Following publication of a Presidential proclamation 
declaring a national economic emergency and designating the essential commodities with respect 
to which that national economic emergency exists, for the duration of that national economic 
emergency, no person shall profiteer with respect to any listed essential commodity. 
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SECTION 4. Penalty. - Any person who profiteers in a listed essential commodity in 
violation of Section 3, shall suffer a penalty of to up to 5 years imprisonment and a fine of up io 
five hundred thousand pesos (Php 500,000) or both, and shall be required to disgorge all profits 
earned on essential commodities with respect to which profiteering occurred. 
SECTION 5. Limitation on Length of Emergency; Extension. 
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A national economic 
emergency, as declared by the President pursuant to Section 3 of this Act, shall be in effect for 
not more than 180 days from the date such emergency is declared, unless extended by 
Presidential declaration that a iiational economic emergency continues to exist, notice of which 
shall be immediately published as a Presidential proclamation. Each extension thereof shall last 
for not more than 90 days, but there shall be no limit on the number of times the President may 
extend a national economic emergency. 
A national economic emergency, or a designation of one or more essential commodities 
with respect to which the national economic emergency exists, may be terminated by passage of 
a joint resolution of Congress. Nothing in this subsection shall prohibit the President, through 
published Presidential proclamation, from terminating a national economic emergency or a 
designation of one or more essential commodities with respect to which said emergency exists. 
SECTION 6. Separability Clause. - If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 7. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to or is inconsistent 
with the provision of this Act is hereby repealed, modified, or amended accordingly. 
SECTION 8. Efectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
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/apm01162009 
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