MANILA — The Department of Trade and Industry (DTI) expects prices of some basic commodities such as milk, bread, and noodles to go down.
DTI has called on manufacturers to discuss with the Department the possible reduction of suggested retail prices (SRPs) of milk, bread, and noodle products after the cost of their raw materials have declined.
“Based on our reference materials, the costs of these raw materials have dipped. For example, the price of imported skimmed milk, which is a raw material for processed milk – powdered, evaporated and condensed – and comprises at least 50 percent of the price components of the product has already dropped to 67 percent,” said DTI Consumer Protection Group Undersecretary Victorio Mario A. Dimagiba.
“Consequently, we expect that the suggested retail prices of processed milk and the other identified basic goods, to decrease appropriately,” Dimagiba said.
“We enjoin the manufacturers to maintain an open communication with the Department so we can discuss each other’s concerns and fully understand the impacts of the decreasing world oil prices on their operations and on consumers’ concerns,” he said.
Aside from raw materials, liquefied petroleum gas (LPG) and oil prices also went down which should have impact on the costs of the aforementioned basic goods and other products which are heavily dependent on LPG and fuel.
“With the continuing drop in the retail prices of diesel and gasoline, the DTI shall continue its intensified price monitoring and enforcement activities in the market to ensure adequacy of supply and verify retailers’ adherence to the SRPs as mandated by Republic Act No. 7581 or the Price Act,” the DTI official said.
Oil prices in the world market hit USD46 a barrel, its lowest in more than five years.
Meanwhile, base on the price monitoring of DTI, retail prices of basic and prime commodities from October 2014 to Jan. 14, 2015 remained stable; other products even exhibited 0.05 percent to 23.72 percent decline in their retail prices.