The Department of Trade and Industry (DTI) is already studying manufacturers’ demand for a price hike on basic commodities.
The last time manufacturers were allowed to raise prices was September 2019 due to the pandemic, eruption of Taal Volcano and typhoons last year.
On July 9, the 60-day price freeze expired, so the DTI thinks it is time to reopen the issue of high prices of products.
“Kasama talaga sa consideration natin na matagal na rin at marami na ring nangyari and marami na ring gumalaw doon sa mga components nila for production,” said Trade Undersecretary Ruth Castelo.
“We consider also the situation of the manufacturers dahil siyempre they bring about a lot of employment. Ayaw naman natin na malugi sila,” she added.
Canned sardine companies are said to be among those who asked for the price hike.
They asked for a 2 percent price increase, which is enough to recoup some of the expensive raw materials and additional costs caused by the pandemic.
“Not to make more money, but to stop the bleeding. Just to substitute what was lost because of the pandemic,” said Canned Sardines Association of the Philippines Executive Director Francisco Buencamino.
Price hike request for basic commodity being studied
Manufacturers are asking for a price hike of P0.50 to P1.50.
The DTI has not yet decided, but the agency wants to limit it to 5 to 7 percent while the pandemic is not over.
“Mayroon mga ibang products na maliliit lang siya. If you think about it, centavos lang ang movement,” said Castelo.
The DTI is also investigating reports that manufacturers have raised prices despite a price freeze.
Under the Price Act, they can be jailed for up to 15 years and fined up to P2 million.
The country’s headline inflation rate slowed down to 4.1 percent in June 2021, after recording an inflation of 4.5 percent for three consecutive months. This brings the Philippines’ average inflation for the first semester of 2021 at 4.4 percent. In June 2020, inflation was registered at 2.5 percent.
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