DTI Issues Stern Warning Against Hoarding and Profiteering Amid Global Uncertainty
The Department of Trade and Industry (DTI) has issued a strong warning to retailers across the nation, cautioning them against the illegal practices of hoarding essential goods and engaging in profiteering. This advisory comes as the ongoing conflict in the Middle East continues to fuel a rise in fuel and oil prices, creating economic instability and concerns over supply chains.
Legal Consequences and Enforcement
In a statement released on Saturday, March 14, Trade Secretary Cristina Aldeguer-Roque emphasized that such activities are strictly prohibited by law and will not be tolerated. "In this time of global uncertainty triggered by the Middle East crisis, the DTI strongly warns all retailers against hoarding essential goods and engaging in profiteering. These illegal practices will not be tolerated," she declared.
The agency highlighted that penalties await those found guilty, with strict enforcement of the Price Act (Republic Act No. 7581) and other relevant legislation. The most severe punishment for illegal price manipulation includes up to 15 years imprisonment and fines reaching up to P2 million, underscoring the government's commitment to maintaining fair trade practices.
Consumer Vigilance and Reporting Mechanisms
Secretary Roque urged consumers to remain vigilant and collaborate closely with the DTI to combat these unlawful activities. "We urge consumers to stay vigilant and to work closely with our agency. Report suspicious activities through DTI’s 18 regional offices nationwide or via our contact hotlines 1DTI (1-384). You may also send your complaints directly to Sec@dti.gov.ph. Together, let us safeguard fair trade and protect Filipino families," she added, encouraging proactive community involvement.
Stability in Basic Goods Supply and Pricing
Meanwhile, the DTI provided reassurance regarding the stability of essential goods supplies. The agency reported that major manufacturers have not yet requested adjustments to the suggested retail prices (SRP) of basic necessities, despite the oil price hikes and the impending suspension of the fuel excise tax.
DTI Assistant Secretary Regino Mallari, Jr. informed a joint House panel that major manufacturers of basic necessities have affirmed their inventory levels at approximately two months as of last week. "They [manufacturers] have not submitted requests for the adjustment of their suggested retail prices for now. If excise tax on petroleum products is suspended, the DTI estimates its impact on the price of basic necessities will be by 2 to 8 percent. This fuel-associated cost varies depending on the product type, with distribution and logistics cost from as low as 0.22 percent to as high as 10 percent of the total production cost," he explained.
Estimated Price Impacts and Future Projections
Mallari detailed the estimated SRP impacts in peso value if the excise tax suspension is implemented:
- Canned sardines: P1.13 or 6 percent
- Bottled water: 16 centavos or 2 percent
- Processed milk: P1.36 or 4 percent
- Coffee: 11 centavos or 2 percent
- Bread: P3.45 or 8 percent
- Instant noodles: 29 centavos or 4 percent
- Canned meat: P1.53 or 8 percent
The DTI assured the public that supplies of basic goods remain stable, with manufacturers maintaining sufficient inventory for at least the next two months, despite concerns over potential price shocks. This proactive stance aims to mitigate the economic impact of the Middle East crisis on Filipino households.
