AN automatic price freeze has been imposed in Batangas after the Sangguniang Panlalawigan ng Batangas placed the entire province under a state of calamity due to the volcanic activities of Taal.
Further, the Department of Trade and Industry (DTI) is studying the option of imposing price control in areas affected by Taal Volcano eruption, as buyers reported incidents of alleged profiteering particularly on products needed to withstand the ongoing calamity.
Trade Secretary Ramon M. Lopez on Monday said the DTI is assessing if there’s a need for the government to apply a price ceiling in areas surrounding the Taal Volcano. However, he raised a price freeze should automatically take effect if an area is placed under a state of calamity, which is the case of Batangas.
“We are all assessing for now,” Lopez replied when sought for comment if a manual price freeze is an option. He added, however, that price freeze would be automatically imposed upon declaration of a state of calamity.
Under Republic Act 7581, or the Price Act, an automatic price freeze takes effect when an area is proclaimed or declared a disaster area or under a state of calamity. In such cases, the price freeze will last for the duration of the condition that brought about it, but not for more than 60 days, or unless the President removes it sooner.
Further, the President can impose a price cap on basic goods in the impendency, existence of the effects of a calamity, or in the threat, existence of effect of an emergency.
In determining the price ceiling, the government should take into account the average price of the product in the last three months preceding the proclamation. It should also evaluate supply availability in the market, as well as the cost to the producer, manufacturer, distributor or seller, as prescribed under the law.
In a separate statement, the DTI said “prices of basic necessities and prime commodities are automatically frozen” in Batangas with the proclamation of state of calamity there. As such, no price movement shall be made in the province until the declaration is lifted.
In another statement, the DTI said it has dispatched enforcement teams to the areas affected by the Taal Volcano’s eruption to check the price movements in the market as a result of mounting reports of alleged profiteering on basic goods and disaster needs.
“It has been reported that some retailers have jacked up their prices of face masks and gas masks, taking advantage of the surge in demand of these products due to the recent eruption of Taal Volcano. The DTI, hereby, issues notice to all retailers that we have dispatched teams to monitor and observe movement of retail prices in the market,” the DTI said.
“Those found to have unreasonably increased their prices of gas masks, face masks, and other similar items, [an] act [that] is tantamount to profiteering, shall be dealt with to the fullest extent of the law,” it added in the statement.
The DTI also reminded that prices of basic goods should remain unchanged since September, which was the last time the agency released a suggested retail price bulletin. Until such time the DTI issues a new SRP bulletin, retailers are prohibited from implementing price hikes on basic necessities and prime commodities.
“DTI will not hesitate to file administrative and criminal charges against unscrupulous business entities and individuals who capitalize on the consumers’ need for their own profit,” the agency warned.
Mercury Drug, one of the country’s largest pharmacies, admitted it temporarily ran out of stock of face masks on demand influx in the past hours. However, it assured it is coordinating with its suppliers for stockpile replenishment, and priority distribution will be given to locations near the Taal Volcano once its inventory is topped up.
It also stated the pharmacy is not hoarding face masks and assured buyers prices will remain the same in spite of the kick in demand.
“Mercury Drug does not hoard face masks. Prices will definitely not increase,” the firm said in a news statement issued on Monday.
At the height of the ashfall last Sunday, consumers from Southern Tagalog and Metro Manila posted online claims of profiteering, as prices of antiparticle masks, particularly the N95 mask, reportedly shot up from P25 per piece to as much as P200.
Taal Volcano, the world’s smallest volcano, erupted last Sunday, prompting authorities to raise Alert Level 4 and evacuate the residential areas surrounding it. As a result, volcanic mud rained in most areas of the Southern Tagalog region, reaching Metro Manila, and even as far as Central Luzon when the sky dusked.
The subsequent ashfall that covered Metro Manila’s skies forced authorities to cancel flights to and from the Ninoy Aquino International Airport, and operations just partially reopened 10 a.m. for departures and 12 p.m for arrivals on Monday.
Image credits: Nonoy Lacza