In consonance with the declaration of Martial Law by President Rodrigo Roa Duterte last May 23, 2017, the prices of basic necessities are automatically frozen at their prevailing prices or placed under automatic price control.
BASIS FOR AUTOMATIC PRICE CONTROL
“Basis for such is Section 6, Republic Act 7581, otherwise known as the Price Act as amended”, says Atty. Teodoro Pascua, Undersecretary of the DTI Consumer Protection Group. Section 6 of the Price Act states that unless otherwise declared by the President, prices of basic necessities are automatically frozen at their prevailing prices or placed under price control whenever an area is declared under state of calamity, disaster, emergency, rebellion, war, martial law, or when the privilege of the writ of habeas corpus has been suspended. Section 6 also stipulates that “Unless sooner lifted by the president, automatic price control on necessities shall remain effective for the duration of the condition that brought it about, but not more than 60 days.”
Section 3 of the Price Act defines prevailing price as the average at which any basic
necessity has been sold in each area within a month from the occurrence of any of the conditions enumerated under Section 6 of the Price Act.
INFORMATION AND DISSEMINATION
Sections 10 (6) and 12 (6) of RA 7581 provides immediate dissemination of prevailing prices or the price ceilings imposed in lieu thereof, as the case may be, through publication in a newspaper of general circulation in the area affected, and through broadcast by radio, and whenever the same is deemed to materially make dissemination of the information more effective such as television. Information may also be done through quad media and posting in public market, supermarkets and other public places.
DIFFERENCE FROM MANDATED PRICE CONTROL
In terms of cause, Automatic Price Control is issued whenever an area is declared under state of calamity, disaster, emergency, rebellion, war, martial law, or when the privilege of the writ of habeas corpus has been suspended while Mandated Price Control is implemented when there is impendency/threat, existence or effects of a calamity or emergency or any event that causes artificial or unreasonable increase in prices; or whenever the prevailing prices have risen to unreasonable levels.
In terms of the need for recommendation, automatic price control do not need recommendation since it is automatically imposed while mandated price control is recommended by the Price Coordinating Council (PCC) or the implementing agency, including the imposition of mandated price ceiling on any or all the products that fall under the list of BN and PC.
In terms of the need for the President’s approval, since it is pre-set, automatic price control need not be approved by the President while Mandatory Price control still needs the approval of the President.
MEASURES TO BE UNDERTAKEN DURING EMERGENCIES
The National and Local Price Coordinating Councils shall convene immediately after
the occurrence of a crisis, calamity, or state of emergency. It shall determine price and supply levels in the affected area/s; and Review prevailing prices and recommend reasonable price ceilings, and/or set suggested retail prices. Frequency of price/supply monitoring may be increased; Strengthen enforcement activities; Submit summary reports to the National Price Coordinating Council, and deputize other government agencies and private sector for assistance in the monitoring, transport, movement and distribution of commodities.
BASIC NECESSITIES TO BE MONITORED BY DTI
DTI will monitor the following: bread, canned fish and other marine products; potable water in bottles and containers; process milk; locally manufactured instant noodles; coffee, salt, laundry soap, detergent and candles.
BASIC NECESSITIES TO BE MONITORED BY DA
On the other hand, the following will be monitored by the Department of Agriculture: rice, corn, root crops, fresh, dried fish and other marine products; fresh eggs; fresh pork, beef and poultry meat; fresh milk; fresh vegetables; fresh fruits; sugar; and cooking oil.