Petitions to raise SRP for 63 basic necessities to be reviewed
The government will resume reviewing petitions to raise the suggested retail prices (SRP) on basic necessities and prime commodities, but said any hikes would be “tempered”—and that prices for 44 of the 63 items monitored by the Department of Trade and Industry (DTI) would not move at all.
Changes in the SRP on some products, such as canned sardines, bread, and instant noodles, are expected this month, said Consumer Protection Group Assistant Secretary Amanda Nograles.
“What is good to highlight here is that increases will be tempered and 71 percent of the products in the SRP Bulletin will not move. Many of the items that are being assessed for adjustment have been pending since 2022,” she said.
The DTI will give priority to petitions for items dating back to 2022, she added.
Among the items that are expected to get an increase in SRP are canned sardines, processed milk, coffee, bread, instant noodles, bottled water, processed canned meat, condiments, and non-food items like toilet soap, candles, and batteries.
Two petitions sought to reduce the weight of their products while raising the SRP.
For food, the highest possible increase could be P7.25, while the lowest is P0.25. Comparatively, the adjustments in the 2023 SRP and the proposed 2024 SRP will be within the vicinity of 6 percent — less than the 10 percent cap specified in the Price Act.
It is mandatory for manufacturers to substantiate their notice of price adjustments to compare with the DTI’s set of data to arrive at the price adjustment. This is crucial for the DTI to give its concurrence for price petitions, Nograles noted.
“We cannot give our concurrence or approval to those who do not prove their price adjustments. It is also important to note that even as the DTI releases the letter of concurrence or letter of approval, manufacturers will need some time to implement the price adjustments. Especially those with computerized systems, they will have to update their price list,” she said.
“So, there will be some lag from the time that the DTI releases the notice of approval to the time that the actual prices in the market are effective,” Nograles added.
In 2022, CPG endorsed three price movements in the SRP following the pandemic and sudden spikes in inflation.
In 2023, movement in the SRP was limited to one item, and the same remains in effect, to date, since the latest issuance of the updated SRP Bulletin in February 2023.
“This is an indication of our efforts to reign in, as much as possible, the [price] increases in basic necessities and prime commodities,” Nograles said.
To date, there are 217 stock-keeping units (SKUs) listed in the SRP Bulletin.