DAVAO CITY (MindaNews / 24 March) — As oil companies implemented another round of fuel price hikes, an executive of the Department of Trade and Industry (DTI)-Davao Region assured consumers that there is no cause for concern yet as the supply of basic commodities in retail establishments in the region is sufficient and prices remain stable.
Romeo N. Vasquez Jr., chief of the Consumer Protection Division of DTI-Davao, told Kapehan sa Dabaw at SM City on Monday that price monitoring in the region has been intensified to ensure retail establishments do not exploit the oil crisis by unreasonably raising the cost of basic commodities beyond the suggested retail price (SRP).
He added that, based on their monitoring for the first three weeks of March, only a few establishments implemented minimal price increases on commodities such as soap, milk products, and processed meat like canned goods, and these remained within 10% limit of the SRP.
Establishments implementing price increases within 10% of the SRP were immediately issued a letter of inquiry, requiring them to explain the basis for the adjustment, according to Vasquez.
Vasquez said, for instance, that they monitored a slight increase in the price of a 155-gram canned sardine, which has an SRP of ₱20.5, but was being sold at ₱20.85 in a grocery store in Davao City.
Increased logistics costs, driven by rising fuel prices, were often cited as a reason for imposing slight adjustments in the prices of basic commodities, he said.
In an interview on Tuesday, Pritz Simon, 44, a resident of Barangay Communal, this city, said the past few days have been especially difficult as he struggles to provide for his family amid the ongoing oil crisis.
A father of two, Simon is a single parent who works both as a construction worker and a tricycle driver.
He explained that amid rising fuel prices, his daily average income of ₱500 to ₱600 now falls short, leaving his children with fewer essentials.
“Mas apektado ana ang mga normal na tao, marginalized na linya kung ang minimum ang ilang income kada adlaw (Ordinary people are more affected, especially those in marginalized sectors whose daily income is only at the minimum level),” he said.
Vasquez said he hopes the conflict between the United States and Israel on one side and Iran on the other will end soon, as a prolonged oil crisis would have an impact on the prices of goods.
Retail establishments imposing excessive price increases could face sanctions for violating Republic Act 7581, also known as the “Price Act.” The law penalizes violations of the SRP with fines ranging from ₱5,000 to ₱2 million, imprisonment of 5 to 15 years, and cancellation of business permits, according to Vasquez.
He said a total of 21 manufacturers of necessities and prime commodities have informed the national office of the DTI that they can only maintain current prices for the next month or two.
These companies include manufacturers of canned sardines, bread, bottled water, instant noodles, coffee, canned meat, soap, and candles.
In a statement, Jeffry Uypala, spokesperson for Kilusang Mayo Uno-Southern Mindanao Region (KMU-SMR), urged President Ferdinand Marcos Jr. to remove the 12% value-added tax and excise tax on all fuel products to bring down fuel prices in the country.
He added that the government should also provide assistance to poor families as commodity prices continue to skyrocket.
“Based on our current monitoring, the price of petroleum products, such as diesel and gasoline, has increased by an average of ₱80 to ₱106 per liter this year, which has also increased the prices of other goods and services,” he said.
On Monday, the DOE announced another round of fuel price increases: ₱11.88 per liter for diesel, ₱6.47 per liter for gasoline, and ₱13.66 per liter for kerosene, effective Tuesday.
Uypala lamented the government’s lack of decisive action to address the economic hardships of ordinary workers.
“Amid the dire situation, the Marcos Jr. administration is taking insufficient steps. The distribution of subsidies to farmers, fishermen, and small drivers affected by the increase in the price of petroleum is insufficient and slow. As for wages and salaries, they remain low and unsustainable,” he added. (Antonio L. Colina IV / MindaNews)
