DTI 7: Retailers Cannot Drastically Lower Down Prices

The public is now expecting a probable price reduction of prime and basic commodities following the slumping of oil prices in the global market.

Department of Trade and Industry (DTI)7 Information Officer Jojie Villamor said regardless whether this is temporary or permament, “everybody knows the unstability of oil prices in the world market because everything solely depends on the oil productions of producing countries.”

She said that while the public expects the retailers to submit themselves to the common belief that oil price movements will have a domino effect on prices of goods,they are at the same time weighing all angles before they ultimately adjust their prices.

During the Association of Government Information Officers (AGIO) forum last week held at PIA-Cebu, Villamor said that the prices of prime and basic commodities cannot be directly felt since the retailers will replenish their stocks only after every three months or after 90 days.

Villamor also added that surely the retailers cannot drastically lower down their prices because all of their stocks were ordered beforehand while oil prices were so high.

She added that if there is a move to lower the prices of all commodities now, this can be made through a gradual process and not on drastic bases.

However, Villamor said that after typhoons Ruby and Seniang, a prize freeze on both basic and prime commodities were immediately implemented in the provinces of Cebu and Bohol.

The DTI ordered a price freeze after the provincial governments of Cebu and Bohol have placed their respective area of jurisdiction under the state of calamities.

Villamor added that the prize freeze will be effective in 60 days so the retailers were strictly warned to immediately follow the said prize law.

She also said that because of the timely plunging down of oil prices, this present set up of commodity prices, particularly those under the price freeze, will continue.

Villamor also said the lowered transport cost may have a positive effect to the prices of basic goods.

“That is our prime concern now to monitor the prices pattern in the supermarkets especially on all food commodities.”

However, she assured the public that the DTI is not complacent and that they are doing the daily inspection of the price situation in grocery stores, department stores and all supermarkets within the Central Visayas areas.