Price freeze automatic in Luzon as Duterte declares state of calamity — DTI

A price freeze on basic goods is automatically in place in Luzon after President Rodrigo Duterte declared a state of calamity in the island, the Department of Trade and Industry (DTI) said Wednesday.

“Entire Luzon is now under price freeze,” Trade Undersecretary for Consumer Protection Ruth Castelo told GMA News Online.

Late Tuesday, Duterte announced he already signed the papers placing Luzon under a state of calamity. 

The National Disaster Risk Reduction and Management Council (NDRRMC) on Monday recommended the declaration of state of calamity over the whole of Luzon due to the damage brought by the typhoons amid the COVID-19 pandemic.

Section 6 of the Republic Act No. 7581 or the Price Act states that unless otherwise declared by the President, prices of basic necessities in an area shall automatically be frozen at their prevailing prices or placed under automatic price control if:

• That area is proclaimed or declared a disaster area or under a state of calamity;
• That area is declared under an emergency;
• The privilege of the writ of habeas corpus is suspended in that area;
• That area is placed under martial law;
• That area is declared to be in a state of rebellion; or
• A state of war is declared in that area

Basic necessities refer to rice, corn, bread, fresh, dried and canned fish and other marine products, fresh pork, beef and poultry meat, fresh eggs, fresh and processed milk, infant formulas, fresh vegetables, root crops, coffee, sugar, cooking oil, salt, laundry soap, detergents, firewood, charcoal, candles and other commodities as maybe classified by the DTI and Department of Agriculture.

The Price Act also states that “if the prevailing price of any basic necessity is excessive or unreasonable, the implementing agency may recommend to the President the imposition of a price ceiling for the sale of the basic necessity at a price other than its prevailing price.”

“Unless sooner lifted by the President, price control of basic necessities under this section shall remain effective for the duration of the condition that brought it about, but not for more than sixty (60) days. The terms ‘disaster’ and “‘calamity’ shall include those brought about by natural or man-made causes, whether local or foreign,” the RA 7581 reads.

Any person who violating the price freeze shall suffer the penalty of imprisonment for a period of not less than one year nor more than 10 years and a fine of not less than P5,000 nor more than P1,000,000, or both, at the discretion of the court. — RSJ, GMA News