Stable consumer prices during holidays vowed

MANILA, Philippines - Supermarket owners said yesterday are willing to temper any price increases for basic and prime commodities at least until after Christmas, in response to the government’s call for them not to take advantage of consumers.

 “For the sake of those affected by the typhoons that hit our country, we will try to do our best to control increases until after Christmas,” Federico Ples, secretary-general of the Philippine Association of Supermarkets Inc. told The STAR. ““We have already reduced our margin to only three percent to five percent net.”

Prices of meat items, canned goods and refined sugar are expected to go up with the government’s lifting of price controls.

Ples said they expect price increase in refined sugar, canned goods and meat items. He explained that the government-declared standard retail prices (SRP) for these products during the period of price control were too low.

Ples said that the SRP then for sugar was at P38 per kilo as against manufacturing cost of P41 per kilo. “Maybe they will deliver, depending on the wholesaler, at P42 per kilo or P42.50 and we will add P.50 per kilo,” he said.

Weeks ago, there was a shortage in the supply of refined sugar in supermarkets as manufacturers refused to deliver at the SRP. Ples said that they expect the shortage to be corrected in the coming days as the price has been adjusted to acceptable levels to manufacturers.

The price of sardines, corned beef and other canned meat on the other hand might go up by three percent to five percent. “They cannot price these products too high also because of keen competition,” Ples pointed out.

As of yesterday, Ples said there was still no increase in supermarket prices because they had not received yet copies of the Executive Order lifting the price freeze.

“The price control is not yet lifted because when we were called in Malacañang last Friday, they said that they would release an EO lifting the freeze. We haven’t received it so there are still no price adjustments for supermarkets,” Ples said. He said that they expect to receive the EO today.

He noted that there is no need to immediately raise prices because the supermarkets still have inventory from the old prices.

Meanwhile, Philippine Amalgamated Supermarkets Association Inc. (PAGASA) president Steven Cua said prices will not automatically go up with the lifting of price controls.

“Prices should not go up immediately after the lifting. In fact, some supermarkets need not adjust their prices,” Cua said in a telephone interview.

He said he has written his member supermarkets and advised them to “please be patient.”

Cua explained that the prices should only go up for those whose SRP was below cost like sugar and corned beef.

Also, he said some supermarkets with higher overhead costs are likely to raise their prices. “Consumers have a choice. They can go to high-end supermarkets or not. I advise them to choose the supermarkets they go to.”