Price hikes sought on basic goods

MANILA, Philippines — Thirteen manufacturers of basic necessities and prime commodities (BNPCs) have pending price increase requests with the Department of Trade and Industry (DTI), mainly driven by high raw materials costs.

At a Laging Handa public briefing yesterday, Consumer Protection Group Undersecretary Ruth Castelo said pending price increases cover a total of 43 shelf keeping units (SKUs).

These include various products such as canned sardines, evaporated milk, powdered milk, coffee, instant noodles, bottled water and canned meat, among others.
Castelo said the manufacturers of food items are requesting for a one percent to five percent price increase or from P0.10 to P7.27.

In contrast, non-food item manufacturers are requesting a six percent to 10 percent price increase or from P1.50 to P9.75.

Asked on what were the reasons for the price increase requests, Castelo said manufacturers stated high raw material costs, especially those being imported.

Castelo stressed that the DTI has a mechanism to verify the price increase requests of manufacturers.

In a recent interview with reporters, Castelo said the DTI does not see any price increases in the near future, until it publishes a new suggested retail price (SRP) bulletin for BNPCs.

Under Republic Act No. 7581 or the Price Act, as amended, the DTI is mandated to issue the SRP Bulletin of BNPCs under its jurisdiction for the information and guidance of manufacturers, distributors and consumers.

The latest SRP bulletin issued by the DTI was published on Feb. 8 and remains in effect.

Asked if the DTI is looking to publish a new SRP bulletin within the year, Castelo acknowledged that it is still a possibility.

“I’m not saying no. Maybe, because it’s just August. We still don’t know what’s going to happen. There’s still four months (in the year),” Castelo recently told reporters.

In the latest SRP bulletin issued in February, price adjustments were made in 76 SKUs, while 141 SKUs have retained their prices.

Castelo said earlier that the majority of these items had limited adjustment up to 10 percent maximum.

In February, she said “58 SKUs adjusted to a maximum of 10 percent, 19 of which are adjusted within one to five percent. Only 18 SKUs are adjusted, a little over 10 percent, mostly non-food items.”

Compared to the previous SRP bulletin issued in August 2022, the February SRP bulletin noted price increases in some SKUs of food products such as canned sardines, canned meat, coffee, milk, bread and instant noodles.