DTI: Prices of basic commodities stable despite oil price movement-A A +A
Tuesday, July 8, 2014
EVEN if the prices of crude oil have been fluctuating in the past months, prices of some basic commodities will not be significantly affected by it, reported an official of the Department of Trade and Industry.
In a forum by the Philippine Information Agency 7 yesterday, DTI Cebu Consumer Welfare and Business Regulation Division chief Zaide Bation explained that some commodities have a low consumption of fuel and their prices do not increase despite the fluctuations in oil prices.
Department of Energy 7 Director Antonio Labios said that the June 24 prices of gasoline, diesel, and kerosene rose by P1.40 per liter, P1.30 per liter and P1.45 respectively.
However, on July 1, prices went down by 45 centavos per liter for gasoline and 10 centavos per liter for diesel. The price for kerosene remained unchanged.
The movement of oil prices is attributed to the turmoil happening in parts of the Middle East, Labios said.
Bation cited as example canned sardines, which have not increased in price since the cost component of fuel is only at two percent.
Prices of evaporated, condensed and powdered milk have increased since July 1 but this is not attributed to the increase of oil prices, according to Bation. She said the increase was due to the rising prices of raw materials for milk.
“DTI is constantly monitoring the supply and price of commodities. When there are manufacturers who call for an increase, we study it, we validate it, and if it’s reasonable, we will grant it,” Bation said.
Milk manufacturers earlier petitioned for an increase of price by nine to twelve percent but DTI only approved an increase of 0.5 percent to eight percent of the suggested retail price.
Processed meat manufacturers a;sp petitioned for a price increase but DTI denied it because prices of the raw materials have been decreasing.
Manufacturers of toilet soap and bottled water also petitioned for an increase, Bation said, but DTI has not yet approved it. Bottled water manufacturers reasoned out the prices of bottle cap and resin have increased; hence, the petition to increase prices.
The pozzolan type of cement under two brands also increased from P1.50 to P2 per bag in June. Steelbar prices of 12mm are now at P186 from P183 in May. Cost component of fuel in cement manufacturing is at five percent while steel bars are at eight percent, Bation said.
Published in the Sun.Star Cebu newspaper on July 09, 2014.