DTI notes price decrease of some commodities PDF Print E-mail
Saturday, 07 February 2015 14:08

By MICHAEL VINCENT D. CAJULAO

 

The Department of Trade and Industry in the city noted a decrease in the prices of some commodities as per recent monitoring.

“Per our monitoring we noticed a decrease in the prices of milk ranging from .8% to 2% translating to P.50 to P2.00 per 300 ml can”, DTI local director Acuña said.

Specifically, Alaska Milk decreased from P53 to P52, Milk Maid from P64 to P63, and Carnation decreased by P.50.

Acuña also noted a decrease in the prices of sugar by 4.65%, with 1kg of brown sugar decreasing by P1 and white sugar with P2.

The biggest price drop monitored by the office was noted in the prices of steel bar.

“The biggest decrease is in the prices of steel bars. The price dropped from 2% to almost 10%”, Acuña revealed.

When asked whether the decrease is a direct effect of the decreasing oil prices, Acuña said, “It is one of the factors that contribute to the price decrease, the other being the stiff competition among manufacturers. There is a healthy competition among them by offering lower price. Another reason is the price of components or ingredients used to manufacture products. We have noted a decrease in component price”.

For other commodities regularly monitored by DTI, Acuña said prices remain stable, well within the suggested retail price (SRP). He, however, pointed that with the continuing decrease in oil prices, DTI will have to review the existing SRPs for possible adjustment.

“With this scenario, DTI needs to review our prevailing SRPs to validate if the improved oil price warrants a price decrease. Again, we also have to consider other factors other than the oil price”, he explained.

Acuña also explained how they come up with SRPs.

“First, companies and producers submit their proposed SRPs. DTI will then review, check, and validate it. We will now see the cost of component and see whether their computation is properly done. Their selling price plus their profit margin, will now give you the suggested retail price”, he expounded. — MVC/DTI-9