The Department of Trade and Industry on Wednesday urged manufacturers to slash retail prices of some basic goods and prime commodities to reflect the continued decline in diesel prices and, consequently, of transportation costs.
In a briefing on Wednesday, Trade Undersecretary Victorio Mario A. Dimagiba noted that while distribution costs comprised only 3 percent of a product’s total cost, the 21-percent decline in diesel prices since the start of the year should still be reflected.
Based on the DTI’s calculations, the price of 155-gram canned sardines could be reduced by 9 centavos, while that of a 410-milliliter evaporated milk could be cut by 25 centavos. For a 300-ml condensed milk, prices could still be reduced by 34 centavos; 150g powdered milk, by 32 centavos; 50g coffee refill, by 27 centavos; 55g instant noodles, by 7 centavos; 170g corned beef, by 22 centavos; and a 40-kilogram bag of cement, by P2.
These reductions might be marginal but the DTI was bent on convincing manufacturers to make the necessary adjustments. Dimagiba, for his part, was optimistic that local manufacturers would heed the DTI’s call as what local flour millers did. Local bakers have also already implemented price adjustments of about 50 centavos to P1 for load breads and pandesal earlier this month.
It was only last month that local flour millers started to cut prices of their products by about P15 to as much as P80 per 25-kilogram bag, given the continuing decline in global wheat prices.
In a related development, Dimagiba also reported that French Baker would be slashing the prices of all its bread products by P1 to P2 next week while Alaska Milk Corp. has implemented price rollback for two products.
Based on Alaska’s letter to Dimagiba, the company has reduced the price of its 700g powdered milk drink by P8.70 to P212.80, and of the 900g pack by P9.45. However, the company raised the price of its 150g variant by P1.60 to P45.75 a pack.