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DTI urges producers to lower price tag on basic goods as oil prices drop

By , on December 5, 2014


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ShutterStock image

MANILA, Philippines – In a statement issued yesterday by the Department of Trade and Industry (DTI), Trade Secretary Gregory Domingo urged producers and distributors of basic commodities to lower the prices of their goods, as the global price of oil continues to decrease.

World oil prices have gone down by 30 percent since June 2014, and Domingo says that Filipino consumers should also feel benefit from the effects of the adjustment in oil costs.

“We are calling on producers and distributors to share with the public the savings they are realizing as a result of the lower cost of transportation and energy, particularly on agricultural products and basic consumer goods,” Domingo said.

“This would be a timely and much needed service to Filipino consumers especially with Christmas just around the corner,” he pointed out.

As such, Domingo has tasked the DTI’s Consumer Protection Group to analyze the corresponding price adjustments from the suggested retail price of basic goods.

“We are going over our data to check how the price drop should be reflected on the prices of basic and prime goods. The steady decline of oil prices should now have a significant impact on the prices of all products and services. At the minimum, they should decrease by 3 percent,” Domingo explained.

The DTI also noted that it will be working closely with the National Price Coordinating Council and other agencies – like the departments of agriculture, energy and health – to explore the effects that the global decline in prices of crude oil will have on prime products and services.

The trade bureau likewise urged other government such as bodies – among them, the Land Transportation Franchising and Regulatory Board and the Energy Regulatory Commission – to look into the ramifications of the decrease in oil prices on cost of land transportation, charges for trucking and shipping, electricity rates, etc..

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