How long will the price ceiling last?
MANILA - The price ceilings imposed by the government on basic and prime commodities are still in place--for now.
Until today, Malacanang has yet to determine how long they will control prices of prime and basic goods, following the onslaught of 2 storms for the past weeks. (See list of commodities under price control here).
Under Republic Act 7581, prices of basic commodities shall be automatically frozen at their prevailing prices or placed under automatic price control in areas declared under a state of calamity (Read more about RA 7581 here).
This price control, however, is only good for 60 days after the area has been considered in a state of calamity.
"We are assessing this periodically, what the situation is. If we sense that there is already a semblance of normalcy in price movements, then we can recommend the President to lift it prior to [the 60-day mark],"Trade Secretary Peter Favila told ABS-CBN News.
The President can lift the automatic price control before the 60-day period, as cited under RA 7581. Should the state of calamity exceed the said period, Favila said the Department of Trade and Industry (DTI) can recommend a mandated price ceiling on basic commodities.
Upon the recommendation of an implementing agency such as the DTI, the President can impose a price ceiling on any basic or prime commodity to ease the burden of consumers, as stated in RA 7581.
According to the law, basic commodities include rice, corn, bread, fresh, dried and canned fish and other marine products, fresh pork, beef and poultry meal, fresh eggs, fresh and processed milk, fresh vegetables, root crops, coffee, sugar, cooking oil, salt, laundry soap, detergents, firewood, charcoal, candles, and drugs classified as essential by the Department of Health (DOH).
On the other hand, prime commodities as defined by RA 7581 include fresh fruits, flour, dried processed and canned pork, beef and poultry meat, dairy products not falling under basic necessities, noodles, onions, garlic, vinegar, patis (fish sauce), soy sauce, toilet soap, fertilizer, pesticides, herbicides, feeds and veterinary products (for poultry, swine and cattle), paper, school supplies, and many others.
Authorities have started to crack down on possible violators of price controls imposed after tropical storm "Ondoy" (international code name Ketsana) and typhoon "Pepeng" (international code name Parma) hit the Philippines.
The agency's move has so far received negative feedback from some, according to Favila.
For instance, Favila said he has been receiving threats through text messages, adding that some unidentified individuals allegedly hit the windows of an agency vehicle after the DTI arrested price ceiling violators in Makati City.
Instead of placing the blame on DTI, Favila called on store owners and businessmen to air their complaints and suggestions to lawmakers.
"I cannot find it in my conscience to recommend lifting it if our well-meaning public servants are being physically threatened. That's why I continue to appeal that this is just an implementation of the law. We are not the ones who crafted the law. We are expected to implement the law, no matter how much it hurts," Favila said.
For his part, Malacanang's Economic Spokesperson Gary Olivar said businessmen should at least get the approval of the Federation of Filipino Chambers of Commerce and Industry for their proposals to be valid.
Supermarkets, meanwhile, said they need more time to comply with the government-imposed price ceiling. With a report from Willard Cheng, ABS-CBN News