Price hikes on basic goods expected soon

By: Jose Santino S. Bunachita May 24,2018 - 10:46 PM

The series of fuel price hikes will soon affect the prices of basic goods, according to the Department of Trade and Industry (DTI).

Prices of basic commodities are expected to eventually increase following the series of oil price hikes implemented by oil companies.

But this would not be reflected right away, according to the Department of Trade and Industry (DTI).

Gladys Oro of DTI Cebu’s Consumer Protection Division explained that manufacturers and suppliers would first have to get approval from the DTI central office before they can change product prices.

“They will have to inform DTI for any price adjustment, complete with all documentary support. They should justify why they will increase their prices and it will be evaluated by the DTI,” she told Cebu Daily News.

The usual reasons why manufacturers and suppliers increase the prices of their products are more expensive materials and increase in operational costs.

But according to Oro, a senior trade and industry development specialist, it would normally take around three months after big oil price hikes for manufacturers to be granted a request to increase their prices.

DTI Cebu regularly checks the prices of basic and prime commodities in stores every Friday to check if retailers sell within the suggested retail prices (SRPs) imposed by the DTI.

Just last Tuesday, oil companies imposed a “big time” price hike on petroleum products.

Gasoline increased by P1.60 per liter; diesel by P1.15 per liter; and kerosene by P1 per liter.

Among the companies that announced price hikes are Pilipinas Shell, Petron Corp., PTT Philippines, Total Philippines, Chevron Philippines, and Flying V Diesel.

Based on records from the DTI Cebu Provincial Office, the last price increase on commodities they recorded was on April 16.

The price of a 155-gram King Cup Sardines in tomato sauce increased to P13.90 from P13.40.

According to Oro, the reason behind the price increase for this product was the operational cost with the start of their production, following a fishing ban from December to February.

The other product that increased its price was a 350-ml budget pouch of Lorins Patis which increased from P16.80 to P17.50.

The manufacturer cited higher cost of raw materials for fish sauce as well as the packaging material.

“At times, they would also include the increase in oil prices that affect their production. But it’s always on the raw materials,” Oro explained.

She added though that fuel and oil products are vital in the production processes of products.

The DTI is mandated to impose SRPs and monitor compliance of basic necessities and prime commodities only.

Basic necessities include canned sardines, condensed milk, evaporated milk, powdered milk, coffee, noodles, detergent and laundry soap, and bottled water among others.

Prime commodities are canned meat like meat loaf, corned beef, beef loaf, condiments like vinegar, fish sauce, soy sauce, toilet soap, and transistor batteries among others.

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TAGS: basic goods, expected, hikes, price, soon

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