The Department of Trade and Industry (DTI) should be given stronger police power such as revocation of licenses of perennial violators of the Price Act.
In a television interview on Saturday, DTI Secretary Ramon Lopez expressed concern over the possible impact of rising fuel prices on inflation even as he assured the agency and the Departments of Agriculture and of Interior and Local Government are on the watch over price movements.
“We can allow the DTI to have a stronger police power in the sense that for perennial violators, the DTI can revoke their license. Right now, we can only impose fines and penalties,” Lopez said.
He added while there is a reasonable mandate and DTI can institute penalties, “the agency needs stricter measures in running after those who take advantage of consumers especially in times of calamities.”
Laban Konsyumer Inc. convenor Vic Dimagiba in the same interview has noted there are proposals that DTI should just let the manufacturers set the suggested retail prices (SRPs) on basic commodities or if not, to make price-setting no longer suggested but mandatory.
But Lopez said in practice, while the name is “suggested” retail price, the SRP in effect has become also the effective selling price in the supermarket.
“Supermarkets and groceries base their selling in the approved SRPs issued by DTI for basic necessities and prime commodities and on select SKUs (shelf-keeping units) or brands,” he added.
Lopez noted the need to have adequate production capacity and supply to ensure prices of agriculture and manufactured products both food and non- food are stable.
But he said this depends on external factors such as world oil prices. “We have seen the aggressive increase of oil prices in the past weeks so it’s very important to make sure that we operate efficiently. At least with those within our control especially manufactured products and to a certain extent agriculture products,” Lopez said.
He added the DTI supports the campaign for the wise and efficient use of fuel and of power even as the country promotes the use of renewable sources of energy.
“That’s the long-term direction of the government. We are giving a lot of incentives to attract investments in renewable energy and lessen the dependence on imported oil,” Lopez said. – Irma Isip
