Price cap quick facts based on the Implementing Rules and Regulations (IRR), implementing R.A. 7581 or the Price Act as amended by R.A. 10623, which seeks to protect consumers by stabilizing the prices of basic necessities and prime commodities and by prescribing measures against undue price increases during emergency situations and like occasions. 

A.    Price ceiling is the maximum price at which any basic necessity or prime commodity may be sold to the general public.

B.    Mandated Price Ceiling shall refer to the price imposed on any basic necessity or prime commodity by the President upon recommendation of the implementing agency or the Price Coordinating Council if any of the following conditions so warrant: -Impending existence or effects of a calamity; -Threat, existence or effects of an emergency; -Prevalence of widespread acts of illegal manipulation; and Impendency, existence or effect of any event that cause artificial and unreasonable increases in prices of said commodities.

C.    Price ceiling is  based on the average price in the last three months immediately preceding the proclamation of the price ceiling, of the basic necessity or prime commodity under consideration;  supply available in the market; and cost to the producer, manufacturer, distributor or seller including but not limited to the exchange rate of the peso to the foreign currency with which a basic necessity or prime commodity or any component, ingredient, or raw material thereof was paid for; exchange rate, cost of labor; and logistics cost.

D.    Illegal acts of Price Manipulation include hoarding, profiteering, cartels committed by persons habitually engaged in production, manufacture, importation, storage, transport, distribution, sale, or other methods of disposition of basic necessity and prime commodity.

E.    Hoarding occurs when a person has stocks of any basic necessity, or prime commodity fifty percent (50%) higher than his usual inventory, and   unreasonably limits, refuses or fails to sell the same to the general public at the time of discovery of the stocks.

F.    Profiteering is the sale or offering for sale of any basic necessity or prime commodity at a price grossly in excess of its true worth. A price shall be deemed grossly in excess of its true worth if the price thereof has been raised by more than ten percent 10 percent in the immediately preceding month.
             There shall be prima facie evidence of profiteering whenever a basic necessity or prime commodity being sold: has no price tag, or is misrepresented as to its weight or measurement, or is adulterated or diluted, or whenever a person raises the price of said commodity which he sells or offers for sale to the general public by more than ten percent of its price in the preceding month.

G.    Penalties include temporary closure or temporary restraining order for not more than ten days; permanent closure of establishment; confiscation/Seizure of all products and/or effects subject of the offense; confiscation/Seizure of all paraphernalia used in the commission of the crime; suspension, revocation, or cancellation of any permit/license, authority or registration issued by the concerned agency; Cease and desist orders; censure; reprimand; and, administrative fine of not less than P1,000.00 nor more than P1,000,000.00.
For illegal price manipulation, the penalty includes imprisonment of not less than five (5) years nor more than fifteen (15) years, and fine of P5,000.00 to P2,000,000.00; for automated or mandated price ceilings the penalty is imprisonment of not less than one year nor more than ten years, or fine of P5,000.00 to P1,000,000.00, or both imprisonment and fine at the discretion of the court. 
The criminal penalties shall be without prejudice to administrative sanctions which the concerned agency may impose.
 

H.    To ensure equitable supply distribution during emergencies, the implementing agencies may activate rolling stores; stock up government warehouses and storage facilities of basic and prime commodities in sufficient quantities/volume; and mobilize available government transport facilities and other utility vehicles.

I. Monitoring/Enforcement 
The Price Coordinating Council (PCC) shall coordinate, rationalize and monitor the programs of member agencies, and the Local Price Coordinating Council (LPCC) to promote productivity in basic necessities and prime commodities; improve efficient transport and distribution systems; and protect consumers from inadequate supply and unreasonable price increases on occasions of calamities, emergencies and like occurrences. 
It shall formulate the operating mechanics of the Council for the guidance of member agencies and the Local Price Coordinating Councils (LPCC) specifically, on the following: coordinative mechanism; reporting system;
emergency measures; enforcement and adjudication; and other measures necessary for the smooth performance of its functions defined by R.A. 7581.

The Department of Trade and Industry shall provide the Secretariat to the Council from the existing organizational structure. The Secretariat shall render administrative, technical and such other support services as may be required by the Council.

J. DURATION 
Price ceiling is good for 60 days only and may be lifted earlier by the President.