MANILA, Philippines – The Department of Trade and Industry (DTI) warned traders not to overprice basic commodities since price manipulation is punishable with 15 years in prison and a fine of P2 million.
DTI said there is no need for consumers to hoard basic goods because there is enough supply of food and other necessities in the market.
“The department is closely watching the movements of the supply and demand of commodities to facilitate smooth flow of goods in the market. Based on reports from the industry sector, there is enough supply of basic goods so there is no need for consumers to stockpile products,” Trade Undersecretary for Consumer Welfare Zenaida Maglaya said in a statement.
Retailers caught selling above the published suggested retail price (SRP) would be asked to explain the price irregularity and show cost of acquisition.
DTI would issue summons to manufacturers or distributors if it turns out that they are selling goods higher than the SRP.
An administrative fine of up to P1 million shall be imposed for violation of Republic Act 7581 or the Price Act subject to the circumstances provided after due notice and hearing. Criminal liability for illegal price manipulation may result to imprisonment of not more than 15 years and a maximum fine of P2 million.
DTI has mobilized its agents nationwide to simultaneously monitor the prices of basic necessities and prime commodities in wet markets, supermarkets and hardware stores to keep a tight watch over traders and retailers for undue price increase.
“Aside from the regular DTI price monitors, the department deploys additional employees from its regional and provincial offices and head offices to survey markets nationwide and check on the prices of basic goods,” Maglaya said.
“With this nationwide market monitoring, DTI would be able to cover more markets and get a bigger picture of the current commodity price situation in the country. DTI also heightens its market visibility so as to avert unscrupulous businesses from unreasonably raising prices amidst the looming oil price hike,” she added.
Maglaya stressed that the increase in prices of petroleum products has minimal effect on the costs of basic and prime goods and that there are other cost factors to be considered, such as price of raw materials, supply and demand situation, seasonality of products, among others.