DTI to integrate 'price rounding off' in next SRP adjustment

The Department of Trade and Industry (DTI) is integrating the Bangko Sentral ng Pilipinas' (BSP) "price rounding" mechanism should it decide to approve requests to adjust suggested retail price (SRP) of basic and prime goods.

According to DTI data, as of September 19, there are 14 manufacturers of 46 Stock Keeping Units (SKUs) covering 10 categories of basic necessities and prime commodities (BNPCs) requested suggested retail price (SRP) adjustments due to the high cost of major raw materials, packaging materials, fuel costs, wages, and other costs that affect the production of these essentials goods.

Trade Secretary Alfredo Pascual, however, said manufacturers reached a consensus to hold off any price increases until the end of the year. 

During a press briefing in Makati City on Wednesday, Pascual mentioned the BSP's price rounding scheme, in which the price of a product with a centavo component shall be rounded off to the nearest 25 centavos.

For example, the Trade chief said if the price is P19.46, it will be rounded up to P19.50.

Pascual said there was a request from a canned sardines manufacturer for an adjustment using the rounding off scheme.

"Pinag-aaralan kung mapagbibigyan (It's still being studied if it will be granted)," the Trade chief said.

Asked if the DTI will mandate price rounding to all manufacturers, Pascual said the agency can only encourage since prices of goods are still market controlled.

If there are adjustments on SRP, the DTI chief said the rounding off scheme will be integrated in the determination of final retail prices.

The BSP is encouraging price rounding in a bid to simplify the country's coin structure by eventually eliminating lower denomination coins, except for the 25-centavo denomination.

Under the BSP's price rounding scheme, using 25-centavo as the base currency, transactions with centavo component of P0.00 to P0.12 shall be rounded down to P0.00 while those with centavo component of P0.13 to P0.24 shall be rounded up to P0.25.

Transactions with centavo component of P0.26 to P0.37, meanwhile, shall be rounded down to P0.25 while those with P0.38 to P0.49-centavo component shall be rounded up to P0.50.

Prices with centavo components within the P0.51 to P0.62 range shall be rounded down to P0.50, and those with values of P0.63 to P0.74 shall be rounded up to P0.75.

Finally, transactions with centavo values ranging from P0.76 to P0.87 shall be rounded down to P0.75, while those with centavo components in their prices within the P0.88 to P0.99 range shall be rounded up by P1.00.

"We are encouraging [rounding off] because eventually the one centavo, 5 centavos [coins] will be gone," Pascual said.

The DTI issues the SRP bulletin to continuously guide consumers and retailers in their purchase and sale of basic and prime goods. — RSJ, GMA Integrated News