Sellers of basic necessities such as groceries and supermarkets are being reminded by the Department of Trade and Industry Regional Office III that the prices of these goods are under Automatic Price Control or Price Freeze because of the declaration of a state of calamity in the whole of the Luzon island group by the President under Proclamation 1051. The said proclamation was signed on November 18, 2020 and shallbe effective for a period of 60 days, unless revoked by the President.
Under the Price Act or Republic Act No. 7581, a price freeze is automatically imposed on the price of basic necessities when there is a declaration of a state of calamity, emergency or similar situation in an area of the country. For this purpose, the law defines ‘Basic necessities’ are goods vital to the needs of consumers for their sustenance and existence, but not limited to, rice, corn, root crops, bread; fresh, dried or canned fish and other marine products; fresh pork, beef and poultry meat; fresh eggs; potable water in bottles and containers; fresh and processed milk; fresh vegetables and fruits; locally manufactured instant noodles; coffee; sugar; cooking oil; salt; laundry soap and detergents; firewood; charcoal; household liquefied petroleum gas (LPG) and kerosene; candles; drugs classified as essential by the Department of Health and such other goods as may be included by law.
Because of this, those found to artificially raise the prices of goods shall be penalized under the Price Act. Penalties on illegal price manipulation such as hoarding, profiteering and cartel range from Php 5,000 to Php 2 Million depending on the gravity of the offense.
The DTI is regularly monitoring the prices of basic necessities and prime commodities to be able to document the prevailing prices, which are the basis for determining whether there is illegal price manipulation.
Regional Director Judith P. Angeles noted that concerned citizens can call the Consumer Hotline of DTI – 1-384, to report any violation of the Price Act. Consumers can also follow and send a message at the Facebook page of DTI Philippines or email DTI at consumercare@dti.gov.ph.
