DTI Assures Reasonable Price Increases Amid Oil Price Hikes

Strategic Insights -

The Department of Trade and Industry (DTI) has assured the public that any increase in the prices of basic and prime commodities would be reasonable in response to the impending increase in oil prices in the world market. According to DTI Davao City chief Teolulo Pasawa, the DTI has been in constant communication with manufacturers of basic and prime commodities, who have assured them that they will not take advantage of the situation. Pasawa stated that a study two years ago found that a one-peso increase per liter in gasoline prices would only result in a less than one percent increase in the retail prices of basic and prime commodities. The DTI has also been monitoring supermarkets and business establishments to check against overpricing.

Key Takeaways:

  • The DTI has assured the public that any increase in the prices of basic and prime commodities would be reasonable in response to the impending increase in oil prices.
  • Manufacturers of basic and prime commodities have assured the DTI that they will not take advantage of the situation and will absorb the costs of rising fuel prices.
  • The DTI conducted a study two years ago, which found that a one-peso increase per liter in gasoline prices would result in a less than one percent increase in the retail prices of basic and prime commodities.
  • The DTI regularly monitors supermarkets and business establishments to check against overpricing.
  • The Office of the President has warned of a new round of oil price hikes in the world market that would pose a threat to the stability of prices of basic commodities and services.
  • President Gloria Macapagal-Arroyo has ordered the implementation of mitigating and calibrating measures to address the problem.
  • The government is implementing energy conservation, belt tightening, and searching for alternative sources of energy as measures to address the oil price hike problem.

Statistics:

  • The DTI study found that an increase of one peso per liter in gasoline prices would result in a less than one percent increase in the retail prices of basic and prime commodities.
  • The government is warning of a new round of oil price hikes that would pose a threat to the stability of prices of basic commodities and services.

Sources:

  • (DTI Davao City chief Teolulo Pasawa)
  • (PNA 31-01 1332)