FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
" 
1. 
First Regular Session 
) 
SENA.TE. 
S.No. 
H>12 
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 public 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, 
includiug 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 othelwise 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 dismptions. ' 
• This bill was originally filed in the Fourteenth Congress, Second Regular Session 
1 


FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. No. 
1012 
~~(.iHvil'b BY , 
" 
-...~ ........ ,~ 
Introduced by Senator Miriam Defensor Santiago 
"~ 
I 
AN ACT 
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TO PROTECT THE NATIONAL SECURITY BY PROHIBITING PROFITEERING OF 
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ESSENTIAL COMMODITIES DURING PERIODS OF NATIONAL EMERGENCY 
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Be it enacted by the Senate and the House of representatives of the Philippines In 
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Congress assembled: 
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SECTION I. Short Title. - This Act shall be known as the "National Emergency Anti-
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Profiteering ,;\ct." 
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SECTION 2. Definition. - For purposes of this Act, the term-
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A. National economic emergency - means, as detelmined by the President, an abnormal 
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market disruption (whether actual or imminently threatened) resulting from 
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extraordinary weather conditions, acts of nature, catastrophic failure of a SOllrce 0 r 
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energy, strike, civil disorder, war or other military action, or national emergency, 
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that-
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1. causes an actual or threatened shortage, or an actual or threatened increase in 
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the price of an essential commodity, and 
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2. is likely to significantly injure the economy of the Philippines or the public 
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health, safety or welfare. 
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When the President declares a national economic emergency, he shall designate the 
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essential commodities with respect to which that national economic emergency exists. 
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Notice of the President's determination that a national economic emergency exists and 
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his designation of the essential commodities with respect to which that national 
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economic emergency exists shall be given by immediate publication of a Presidential 
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proclamation. 
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I 
B. 
E~sential commodity - is -
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1. crude oil, propane, gasoline, diesel fuel, kerosene, home heating oi(, aviation 
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fuel, or other petroleum distillate, or 
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2. a commodity that the President determines to be a commodity-
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a. of significant importance to the Philippine economy, or 
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b. vital or necessary to the public health, safety or welfare, a disruption 
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in the supply, or sudden increase in the price, of which is likely to 
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significantly injure the economy of the Philppines or public health, 
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safety or welfare, and thereby threaten the national security. Notice 
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of such determination shall be given by publication of a Presidential 
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proclamation. 
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C. Listed essential commodity - means any essential commodity with respect to which 
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the President has designated that a national economic emergency exists. 
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D. Profiteer - means to offer for sale, sell, transport, or deliver an essential commodity at 
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an excessive price, or to place excessive restrictions or conditions upon the sale, 
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delivery or transportation of an essential commodity. 
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E. Excessive price - is one that is not justified by the seller's actual costs of acquiring, 
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producing, selling, transporting, and delivering the actual product sold, plus a 
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reasonable profit. In calculating the seller's actual costs, no allowance shall be made 
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for the replacement costs of an essential commodity if the seller is reasonably assured 
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of recouping the replacement costs as a part of the price of subsequent sales of an 
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essential commodity. It shall be prima facie evidence of an excessive price that the 
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increase in the seller's price for a listed essential commodity during a national 
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economic emergency exceeds the l11crease in the seller's actual costs for actual 
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product sold. 
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SECTION 3. Prohibited Act. - Following publication of a Presidential proclamation 
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declaring a national economic emergency and designating the essential commodities with respect 
3 


I 
to which that national economic emergency exists, for the duration of that national economic 
2, 
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 
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violation of Section 3, shall suffer a penalty of to up to 5 years imprisonment and a fine ofnp to 
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five hundred thousand pesos (Php 500,000) or both, and shall be required to disgorge all profits 
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earned on essential commodities with respect to which profiteering occurred, 
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SECTION 5, Limitation on Length of Emergency,' Extension, - A national economIc 
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emergency, as declared by the President pursuant to Section 3 of this Act, shall be in effect for 
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not more than 180 days from the date such emergency is declared, unless extended by 
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Presidential declaration that a national economic emergency continues to exist, notice of which 
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shall be immediately published as a Presidential proclamation, Each extension thereof shall last 
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for not more than 90 days, but there shall be no limit on the number of times the President may 
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extend a national economic emergency, 
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A national economic emergency, or a designation of one or more essential commodities 
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with respect to which the national economic emergency exists, may be terminated by passage of 
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a joint resolution of Congress. Nothing in this subsection shall prohibit the President, through 
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published Presidential proclamation, from terminating a national economic emergency or a 
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designation of one or more essential commodities with respect to which said emergency exists, 
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SECTION 6. Separability Clause, - If any provision or part hereof, is held invalid or 
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unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
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valid and subsisting, 
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SECTION 7. Repealing Clause, - Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule or regulation contrary to or is inconsistent 
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with the provision of this Act is hereby repealed, modified, or amended accordingly, 
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SECTION 8, Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation, 
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1 
2 
Approved, 
/apm 01162009 
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