Prices of basic goods seen to remain stable

Industrialist Raul T. Concepcion said yesterday that prices of basic commodities should remain stable in June and July following the government’s decision to reduce the Power Purchase Agreement (PPA) charges.

"Stable prices would allow more money for the payment of tuition fees and other household expenses," Concepcion said.

For the industrial sector, Concepcion said the lowering of the PPA charges will help bring down the cost of raw materials, resulting in stable prices and making Philippine exports more competitive globally.

Concepcion also cited other factors that may contribute to stable prices: stable prices of manufactured products; a maximum of only 65 centavos in oil price increases this month; no increase in transport fares, shipping rates and hauling charges; no increase in power rates with the reduction of the National Power Corp.’s PPA charges; and the continued strength of the peso against the dollar.

The industrialist said that electricity rate is expected to drop by a total of P1.15 per kilowatt hour.

The reduction includes the PPA decrease of 85 centavos and the mandated 30-centavo reduction under the Power Reform Act.