In a letter to Trade and Industry Secretary Manuel Roxas II, Nestle and Alaska informed the DTI of their intention to effect the price increase due to escalating production cost.
Alaska said that its last price adjustment was affected in May 2001.
Its last price increase, Alaska said, was not even sufficient to cover the increase in its production cost.
Roxas, for his part, acknowledged that the price increase being sought by the two companies are within the limits set by the Price Act.
"Companies are allowed to increase by not more than 10 percent from the previous month’s price," Roxas said.
Roxas explained that "those who increase their price by more than 10 percent from the previous month’s prices would be slapped with administrative and criminal penalties."
The DTI, Roxas assured, continues to monitor prices and avert any profiteering by unscrupulous traders.
Fortunately, Roxas said, prices of most basic commodities have remained stable despite the series of oil price hikes.
There are fears that the continuing oil price hikes would result in higher utility cost, thus, increasing production cost which would then result in higher prices of goods.
Meat and vegetable prices remain stable following a market visit by Trade Undersecretary Adrian S. Cristobal.