DTI reviews SRP of select basic goods, sees room for reduction

MANILA, Philippines - The Department of Trade and Industry (DTI) is reviewing the suggested retail prices (SRPs) for selected basic goods such as milk, bread and noodles, citing lower cost of imported raw materials.

Trade Secretary Gregory Domingo has instructed Trade Undersecretary for Consumer Protection Group Victorio Mario Dimagiba to review the retail prices of the selected basic goods.

“SRPs for selected basic goods such as milk, bread and noodles should go down due to lower cost of imported raw materials of skimmed milk, powdered milk, and LPG (liquefied petroleum gas),” the department said.

Even as prices of Pinoy Tasty and Pinoy Pandesal have been reduced by P0.50 and P0.25, respectively in November. Domingo said any additional price reduction would be welcomed by consumers.

Prices of most basic necessities and prime commodities in the last quarter of 2014 reflected the declining cost of petroleum products such as diesel and gasoline for the same period.

The DTI said the prices of most of the monitored retail prices of basic and prime goods from October to December 2014 are unchanged or are lower than the published SRPs by 0.06 percent up to 23.53 percent.

Prevailing monitored prices of 51 brands of basic and prime goods remained at SRP levels, while products whose prevailing prices are lower than the SRPs are: Milkmaid Full Cream Sweetened Condensed Milk 300 ml (millilitre) – lower by P2.85; Alaska Evaporated Milk 370 ml – lower by P1.20; Alpine Evaporated Milk 370 ml – lower by P3.75; Nido Fortified Powdered Milk 160 g (gram) – lower by P0.05; and Anchor Full Cream Powered Milk 150 g – lower by P3.05.

Based on the DTI’s computation, lowering by three percent the SRPs of basic necessities and prime commodities due to falling diesel and gasoline prices will only translate to a reduction of 0.08 to 12 percent off the published price guide.

Such reduction, the DTI said, is much lower than adjustments resulting from competition of brands in the retail market.

As for products with no published SRPs, some brands reflected price reductions of 0.13 to 8.75 percent in the October to December period.

The monitored prices of 67 brands of basic and prime goods with no SRPs meanwhile, were unchanged from October to December.

“As the retail prices of diesel and gasoline continue to go down, the DTI shall intensify its price monitoring and enforcement in the market to ensure adequacy of supply and verify retailers’ adherence to the SRPs as mandated by Republic Act No. 7581 or the Price Act,” Dimagiba said.

He also said the SRPs for Noche Buena products continue to be in effect and so, no price increases should be seen for such goods.

Under the Price Act, firms that engage in illegal price manipulation such as profiteering, could face penalties of imprisonment of five up to 15 years and administrative fine of P5,000 up to P1 million.

Retailers are reminded to follow the SRPs, while consumers are advised to check the price guide from the DTI before making purchases.

Consumers can visit the DTI website: www.dti.gov.ph for a copy of the SRPs.

To report retailers selling above the SRPs, consumers can call DTI Direct at 7513330 or 09178343330.