Starting next month, the Department of Trade and Industry (DTI) will implement a price hike on 63 items under basic necessities and prime commodities (BNPC) due to mounting pressure from manufacturers.
Fuel prices are also poised for a hefty surge next week, with analysts predicting an increase of over P2 per liter for diesel.
During a chance interview on Thursday, Jan. 16, DTI Secretary Ma. Cristina Roque said that of the 217 BNPCs under the agency’s suggested retail price (SRP) bulletin, 72 percent will not have any price increase.
The remaining 28 percent, or about 63 goods, will face “minimal price increases” that are below the 10-percent mark.
“Most are below five percent and a little bit below 10 percent. So, the price increase is just very minimal actually,” Roque said.
When asked about the reason behind this increase, Roque explained that manufacturers are voicing out their concerns about the soaring prices of raw materials.
“As much as we want to really protect the consumers, we must also protect the manufacturers and the businesses kasi these people employ people,” explained Roque.
“We don’t want them to terminate or cut people from their jobs. So, we just have to make sure there’s a win-win situation for both parties,” she said.
The BNPCs that will face price increases include canned sardines, bread, candles, batteries, coffee, and milk.
Roque said the DTI shall release the updated SRP bulletin, which includes the adjusted prices for certain BNPCs, “very soon.”
“Hopefully, next month kami mag-start ng price increase, para at least there's also enough time for us to tell the consumer that may kaunting price increase,” she said. (Hopefully, we can start the price increase next month so that there's enough time for us to inform the consumers about the slight price increase.)
The DTI chief advised consumers to be “wise” when purchasing so they can flag possible abuses by retailers on the prices of goods. She said Filipinos should regularly check the SRP bulletin.
Hefty fuel price hike
Motorists should brace themselves for a shock at the gas station as fuel prices are poised for a hefty surge next week.
Based on four days of trading on the Means of Platts Singapore (MOPS), along with movements in the international oil market, gasoline is forecasted to increase by P1.35 to P1.60 per liter, diesel by P2.30 to P2.60 per liter, and kerosene by P2.30 to P2.50 per liter.
Analysts from the Department of Energy’s (DOE) Oil Industry Management Bureau (OIMB) and Jetti Petroleum cited the effects of sanctions imposed on Russia by the United States and the United Kingdom.
“This will result in a reduction of Russian exports, which could push global crude prices higher in the near term as the market adjusts to the loss of supply from one of the world’s largest oil producers. Likewise, there could be potential increases in shipping costs,” explained Rodela Romero, OIMB director.
Additionally, Leo Bellas, president of Jetti Petroleum, added that the sanctions on Russia could affect Russia’s top buyers, China and India.
A previous report by Capital Economics estimated that the restrictions would affect nearly 700,000 barrels per day (bpd) of Russian oil, at least 20 percent of Russia’s seaborne crude output.
“Given that Russia accounts for about 20 and 40 percent of Chinese and Indian crude imports respectively, strict adherence to these sanctions will boost demand for unsanctioned oil and support prices as trade flows adjust,” the report elaborated.
Despite this, OPEC+ could potentially allow voluntary production cuts, which they previously held off on until April.
As of last week, a liter of gasoline in Metro Manila cost around P58 to P68.33, diesel P56.85 to P69.39, and kerosene P71.95. (With a report from Gabriell Christel Galang)