The government has deferred the impending hike on the suggested retail price (SRP) of some basic necessities as the country faces another surge of COVID-19 cases while in the midst of strict observance of another enhanced community quarantine (ECQ).
Trade Secretary Ramon Lopez said there was no way the government would allow any price hikes that would further burden a country that stands to lose billions of pesos during the two-week lockdown from August 6 to 20.
“We decided to postpone the issuance of the SRP. Definitely, no price movements during the ECQ period,” he said.
The Consumer Protection Group of the DTI has also advised manufacturers and consumers that prices of basic necessities will continue to be at current levels, until the final days of the ECQ.
The DTI was poised to release a new set of SRP following a two-year moratorium on price hikes due to the pandemic.
Manufacturers have petitioned for a 3 to 5 percent increase in SRP starting the month of August.
In a recent meeting, manufacturers complained that the price of tin cans went up by 60 percent while pet bottle packaging also increased by 37 percent. Prices of herring, used to make sardines, rose by 14 percent, meat by 10 percent and mechanically-deboned meat by 87 percent.
The DTI has already approved price increases for consumer goods such as milk and sardines. It is still assessing pricing requests for canned meat, instant noodle, coffee, creamer and condiments.
The Department previously announced that basic necessities will now be sold based on the September 30, 2019 SRP list, following the lifting of the 2-month moratorium on increases.
The basic necessities were placed under automatic price control at their prevailing prices due to the outbreak of African Swine Fever. The price freeze lasted 60 days, from May 10, 2021 till July 9, 2021.
The products under basic necessities include canned sardines in tomato sauce, luncheon meat, meatloaf, beef loaf, corned beef, processed milk, coffee, bread, locally manufactured instant noodles, salt, detergent soap/laundry soap, toilet soap, bottled water, candle, and condiments such as vinegar, soy sauce, and fish sauce.
The DTI reiterated its warning on non-compliance lest erring establishments shall be charged of illegal price manipulation, hoarding, profiteering, and cartel. Based on the Price Act, those found engaging in illegal price manipulation will be subject to imprisonment for a period of not less than 5 years but no more than 15 years, and will be required to pay fines of not less than P5,000 to P2 million.
Public transport is also back at 85 percent to ensure the movement of essential workers, the Land Transportation Franchising and Regulatory Board (LTFRB) said.
LTFRB chairperson Martin Delgra III said six routes have been reopened recently for UV Express covering 255 units.
The LTFRB, Delgra added, is also set to resume its assistance program for drivers affected by the restrictions even as it is still waiting for the P3-billion funding from the Department of Budget and Management.
Meanwhile, Senator Sherwin Gatchalian urged the Energy Regulatory Commission to direct other distribution utilities to replicate the move by Meralco which suspended all disconnection activities during the ECQ lockdown.
The Senate Energy Committee chairperson likewise renewed his call on the concerned authorities, particularly the local government units, to allow the continued conduct of onsite meter readings to ensure the accuracy of consumers’ electric bills.
Meralco has said it will continue meter reading and bill delivery activities.
“We don’t want a repeat of last year’s ‘bill shock.’ We’ve had enough of this in the past and both the consumers and the DUs should have learned from what happened,” he said.
“If consumers will be billed appropriately, then they would not have any reason why they should not settle their obligation on a later date,” he added.
