DTI thumbs down possibility of price freeze

The Department of Trade and Industry (DTI) is not keen on implementing a price freeze on basic necessities amid the rising cost of petroleum products aggravated by the Russia-Ukraine war.

During Thursday's Laging Handa briefing, DTI Assistant Secretary Ann Cabochan said Republic Act No. 7581 or the Price Act has mechanisms in place for mandating a price freeze.

“[K]unwari kung may declaration ng state of emergency. As of this time and sinabi na 'to ni [Trade] Secretary [Mon] Lopez, na hindi pa natin nakikita yung circumstances that will give rise to a declaration of state of emergency," Cabochan said.

(For example, there is a declaration of state of emergency. As of this time, as mentioned by Trade Secretary Ramon Lopez, we haven’t seen any circumstances yet that will  give rise to a declaration of state of emergency.)

Under Section 6 of the RA 7581, prices of basic necessities in an area shall automatically be frozen at their prevailing prices or placed under automatic price control under the following circumstances:

The area is proclaimed or declared a disaster area or under a state of calamity
The 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
A state of war is declared in that area

The products under basic necessities include canned sardines in tomato sauce, luncheon meat, meatloaf, beef loaf, corned beef, processed milk, coffee, bread, locally manufactured instant noodles, salt, detergent soap/laundry soap, toilet soap, bottled water, candle, and condiments such as vinegar, soy sauce, and fish sauce, according to the DTI.

"Patuloy po natin 'yang mino-monitor kung magkakaroon ng circumstances that would prompt such declaration,” Cabochan said.

(We are continuously monitoring if there will be circumstances that would prompt such a declaration.)

Prices of petroleum products have increased for 11 consecutive weeks since the beginning of the year, bringing the year-to-date adjustments for diesel at a net increase of P30.65 per liter, gasoline at P20.35 per liter, and kerosene at P24.90 per liter.

The government released fuel subsidies for both public transportation and agriculture sectors to cushion any inflationary impact of the rising fuel prices. —KBK, GMA News