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Retailers question ‘Cebu price ceilings’

First Posted 10:55:00 10/09/2009

Some Cebuano businessmen are complaining about the declaration of President Gloria Macapagal-Arroyo to place the country in a state of calamity, which in effect places all basic commodities under an automatic price freeze.

Lawyer Josh Carol Ventura, Department of Trade and Industry regulatory division chief, said that with the the Presidential Proclamation 1898 issued by President Macapagal-Arroyo on October 2, mandated price ceilings would soon be imposed for prime commodities.

Ventura admitted that their office has received calls from retailers in Cebu as well as those who are in the construction materials business who are apprehensive about the mandated price ceilings.

?Yes, we did have calls, but I can?t mention the companies. They are complaining why Cebu should be included,? Ventura said.

?Once the mandated price ceiling will be imposed, a businessman who will not abide by the law will be summoned and may be charged with administrative penalties,? Ventura said.

As to when it would be implemented, Ventura said they were still waiting for the advice from the head office.

?As of now, they are still gathering the reports; after that the implementation of the price ceiling would follow,? he said.

He announced to the Philippine Retailers Association Cebu Chapter members that the DTI head office had requested a report on the average price of prime commodities in Cebu and all other provinces nationwide, which will then be the basis for the implementation of the mandated price ceiling.

?This will be per province. They have asked us to give the prices of prime commodities, which include construction materials, within the last three-month period because what will happen next is that under the state of calamity, the government will then issue a mandated price ceiling for the prime commodities aside from the automatic price freeze on basic commodities.?

In Manila, the DTI has also expanded the list of basic commodities, adding to the list noodles, batteries and candles. This, however, will not be implemented in Cebu as other provinces is not affected by the recent storms, said Ventura.

He said the declaration putting the whole nation under state of calamity provides an automatic price freeze on basic commodities, which lasts for 60 days from the day of the declaration. ?So that?s 60 days from Oct. 2, 2009.?

Ventura, however, said that with regards to the mandated price ceiling, the law does not really have any provision on how long the ceilings will be in effect.

?Once it?s imposed, we don't really know until when it would last because the law is silent about it.?

However, on Wednesday Executive Secretary Eduardo Ermita said he was awaiting the official recommendation from Defense Secretary Gilbert Teodoro, chairman of the National Disaster Coordinating Council, on whether or not to lift the state of calamity.

He said Teodoro was eyeing a ?selective lifting? of the declaration in the Visayas and Mindanao.

?I am hoping that within 24 hours, there will be a recommendation from Secretary Teodoro,? he said in a media briefing.

/With inquirer report


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