THE Department of Trade and Industry (DTI) in Negros Occidental said on Thursday, January 28, that the continuous drop in the prices of petroleum products would not significantly affect or reduce the prices of basic and prime commodities.
Reginald Hudierez, Trade and Industry Development Specialist of DTI-Negros Occidental, pointed out that transportation cost is only one of the cost components of products, thus oil price rollbacks would not significantly pull the prices of commodities down.
Hudierez said that based on the agency’s latest price monitoring, prices of basic and prime commodities remain steady, some even increased slightly, and still within the suggested retail price (SRP).
DTI-Negros Occidental has monitored slight increases in the prices of milk and flour-based bread.
“DTI’s main task is monitoring, it has no control over the prices of products if due to the movement of fuel prices,” Hudierez said, adding that it can only intervene like freezing the prices during calamities and disasters.
Basic commodities include products like soap, milk, coffee, salt, bread, and sardines. Examples of prime commodities are noodles and all kinds of canned goods except sardines.
According to the DTI, transportation cost for canned goods is minimal compared to the total production cost. The bulk of the cost component, which is about 60 percent, is the raw material for packaging, mainly the can.
The transport cost is incurred when products are delivered from manufacturer to stores or establishments, but efficient product delivery cannot lessen other cost components, Hudierez said.
DTI-Negros Occidental is urging consumers to help the agency monitor the movement of prices in the market, particularly those in violation of SRP.
Through this, rights and welfare of consumers are protected, the DTI added.