DTI continues probe on cement price spike

MANILA, Philippines - Cement makers are given until next week to explain their higher selling prices, a Trade official said.

Trade undersecretary Zenaida Maglaya told reporters in a chance interview that while three of the four firms asked to explain their higher selling prices have already submitted reports, the Department of Trade and Industry (DTI) still wants them to give additional explanation.

Last month, the DTI asked Holcim Philippines Inc., Lafarge Republic Inc., Cemex Philippines Group of Companies and Eagle Cement Corp. to give reasons for selling above the suggested retail price.

She said the reports submitted by Holcim Philippines, Lafarge Republic and Cemex Philippines still lack details needed by the department to decide whether to allow the firms to continue to sell at current prices.

“We gave them extension. By next week, they have to submit their additional explanation,” she said.

Eagle Cement, which has yet to submit its report to the DTI, is also given until next week to explain to the department.

Holcim Philippines raised its selling price to P218 per bag from P195 last year.

Lafarge Republic which sells the Republic brand and Cemex Philippines which carries the Rizal brand, both hiked their selling prices to P220 per bag from P205 and P195 per bag, respectively.

Eagle Cement, which has committed to sell at lower prices than those prevailing in the market following incentives granted to them for their cement manufacturing operations, is selling at P220 per bag.

The suggested retail price for cement is at P205 to P210 per bag.

“We really need to ask for an explanation because of the increase in prices,” Maglaya said.

She said that based on the reports to be submitted, the DTI will decide on the action to be taken.

“If the price is not found to be reasonable, we will ask for rollback,” she said.