DTI planning to do away with suggested retail prices on basic goods

The Department of Trade and Industry (DTI) is planning to deregulate the setting of suggested retail prices (SRP) on basic commodities, Trade Secretary Ramon Lopez said on Friday.

He added that market players should have the freedom to dictate the prices of basic goods.

"DTI should not set the SRP bahala 'yung mga kumpanya, please note that in each category merong medium, low, at high price so kanya-kanyang setting 'yan. The DTI has no business in telling them eto ang presyo... nag-request ka ng price increase , anong basehan mo na papayagan ka?" Lopez said.

"'Yun ang palagi kong tinatanong sa team so, I told them let's not do 'yung approval system sa SRP," he added.

The Trade chief noted that competition among many market players already sets a "natural mechanism" to temper prices, thus, intervention from the DTI in setting prices is no longer relevant.

"In a competitive industry sector ang mga presyo diyan ay very competitive, ang description diyan katayan as in pababaan because everyone... are all after market share that's the practice," Lopez said.

He also alayed fears that the DTI's plan to remove the SRP approval system would result in collusion or abuse among retailers and manufacturers.

"Walang collusion kasi nga competitive, maraming brands, maraming players," Lopez said.

He said that the DTI will monitor industries where a possible abuse can occur especially in sectors where there are few market players.

"Ang dapat bantayan ay profiteering, nagco-collude ng mga presyo so hahanapin natin ang mga industry na 'yan... so we're working with the Philippine Competition Commission na review-hin natin 'yung price structure ng mga konti lang ang players," Lopez said. —NB, GMA News