Manila, April 1 -- A Senate panel has proposed the imposition of a windfall tax on oil firms to help fund targeted subsidies and cushion the impact of soaring fuel prices on consumers.

The recommendation underscored the need for targeted interventions as rising global oil prices continue to strain household budgets and economic activity.

"In view of the prevailing economic conditions, it is recommended to impose a temporary windfall profit tax on oil companies during periods of elevated global energy prices resulting from external supply disruptions, with the aim of facilitating short-term redistribution through targeted fuel subsidy programs. Revenue from the tax should be expressly earmarked for this purpose," the report said.

The Se...