Price increase sought for 43 food products

Hefty pump price hikes set next week

MANILA, Philippines — Fourteen manufacturers of basic necessities and prime commodities (BNPCs) have filed requests for price increases, the Department of Trade and Industry (DTI) said yesterday.

Fuel pump prices, meanwhile, are expected to go up sharply next week, further extending the streak of increases in gasoline, diesel and kerosene prices to an 11th week.

Oil firms are set to announce the price adjustments on Monday, but an industry source said the hikes may range from P1.20 to P1.30 for gasoline and from P1.80 to P1.90 per liter for diesel. Kerosene prices are seen rising by P1.50 per liter.

On the requests for price increase for basic goods, the DTI said its consumer protection and advocacy bureau is still studying the matter. Trade officials also declined to identify the manufacturers or other details regarding their requests.

In a report on ABS-CBN television, Trade Assistant Secretary Jean Pacheco said the DTI wants to discuss with manufacturers their price increase requests.

“We need to talk to them. We need to ask them what should be done, to be improved, because there are expenses in distribution and logistics. We want to reduce that,” Pacheco was quoted in the news report as saying.

Last month, Consumer Protection Group Undersecretary Ruth Castelo revealed 13 pending price increases covering a total of 43 shelf-keeping units.

These include various products such as canned sardines, evaporated milk, powdered milk, coffee, instant noodles, bottled water and canned meat.

Castelo said 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 for a six percent to 10 percent price increase or from P1.50 to P9.75.

Asked about the reasons stated by manufacturers for the price increase requests, Castelo said they cited high raw material costs, especially of those being imported.

Castelo stressed that the DTI has a mechanism for verifying price increase requests.

The trade official said earlier they did not expect any price increases in the near future, or at least until a new suggested retail price (SRP) bulletin for BNPCs is released.

Under Republic Act 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 from the DTI was published on Feb. 8 and remains in effect.

Asked if the DTI is eyeing the release of a new SRP bulletin within the year, Castelo acknowledged that there is a possibility.

“We still don’t know what’s going to happen. There’s still four months [in the year],” Castelo earlier told reporters.

Meanwhile on the coming fuel price hikes, Cleanfuel said running trend showed a potential P1.10 price hike for gasoline and P1.60 for diesel.

Should the expected price adjustments push through, it would stretch the streak of increases in diesel and kerosene prices to an 11th consecutive week, and gasoline to 10th straight.

The Department of Energy (DOE) said oil price has risen on tight supply as Saudi Arabia and Russia announced an extension of voluntary production cuts through the end of 2023.

Last Tuesday, oil companies raised prices by P0.20 per liter for gasoline, P0.40 per liter for diesel, and P0.20 per liter for kerosene.

These price adjustments resulted in a year-to-date net increase of P15.50 per liter for gasoline, P11.10 per liter diesel, and P7.94 per liter for kerosene, based on data from the DOE.

The 10 straight weeks of upward adjustments in the prices of diesel and kerosene translate to P14.80 per liter and P13.95 per liter, respectively.

The nine consecutive weeks of increases in gasoline prices, on the other hand, have amounted to P9.85 per liter.

DOE monitoring from Sept. 12 to 14 showed that prevailing retail prices of diesel and diesel plus products in Metro Manila ranged from P60 to P71.54 per liter, and from P66.75 to P84.60 per liter, respectively.

Gasoline prices, meanwhile, ranged from P60 to P88.15 per liter, depending on the RON or research octane number of the fuel.

As for kerosene, prices monitored during the period ranged from P78.75 to P91.09 per liter. — Richmond Mercurio