BY: FAYETTE C. RIÑEN
CEBU CITY, July 9 (PIA) – With rising fuel prices and high costs of agri goods such as garlic, the Department of Trade and Industry (DTI-7) based in Cebu is doing constant monitoring on the prices of prime commodities and basic necessities.
Rose Mae Quiñanola, chief of the Consumer Welfare and Business Regulatory Division (CWBRD) of the DTI-7bared only prices of processed milk products have risen such as evaporated, condensed and powdered milk goods.
“We are constantly and regularly monitoring prices of prime commodities and basic necessities to ensure prices are within the suggested retail prices or SRP,” said Quiñanola during the weekly forum of the Association of Government Information Officers (AGIO-7) recently that tackled the topic ‘Rising Fuel Prices and Impact to Costs of Basic Goods.’
Prime commodities that are constantly being monitored by the DTI-7 include processed meat, bottled water, sardines, coffee, detergent, laundry soaps, instant noodles, salt, vinegar, bread, soy sauce, toilet soap, batteries, cement and steel bars.
Zaide Bation, CWBRD chief of DTI-Cebu Province said the increase in prices of processed milk products ranged from .5 percent to eight percent of the SRP as price increases differ based on the brand.
Bation said supply and prices of basic commodities are stable in the province and that most manufacturers’ petitions for price hikes undergo strict validation and evaluation before they can implement any increases.
Engr. Antonio Labios, regional director of the Department of Energy-Visayas in the same forum said rising fuel prices can really impact on the prices of basic commodities but could not determine how much. “The DOE website shows a composite monitoring of fuel price hikes and its impact on prices of basic goods,” said Labios.
Bation however said there are various factors why manufacturers petition for price hikes such as costs on distribution, raw materials, electricity and fuel. “But the major factor is always the cost of raw materials” and that any high movements in this area will definitely have a big impact to pricing,” said Bation.
Bation cited the manufacturing of canned sardines which only used two percent fuel so any oil price hikes would not have a very big bearing on its pricing.
Quiñanola on the other hand, said prime commodities mostly affected by oil price hikes are cement and steel bars. “Cement manufacturing uses 19 percent electricity and five percent on fuel,” said the DTI-7 official.
Meanwhile, manufacturers of canned meat have petitioned for a price adjustment but this was not approved based on evaluation while bottled water manufacturers need additional justification on their petition for price increase, disclosed Quiñanola.
Quiñanola advised consumers to check the weight and price tag of the products before purchasing them. (mbcn/fcr/PIA-7)