DTI monitors consumer prices; oil price hike looms

MANILA, Philippines — There is no need for adjustments to suggested retail prices (SRP) of basic necessities and prime commodities for now, but the impact on oil prices of the US airstrike that killed a top Iranian military leader would be closely watched by the government.

Trade Secretary Ramon Lopez said the agency has not received any requests for adjustments on the SRP.

“So far, we have not been given any and we also don’t see any reason (to adjust SRP),” he said.

Basic necessities part of the SRP list are canned sardines, milk, coffee, bread, instant noodles, salt, detergent soap, bottled water and candles.

Counted as prime commodities, meanwhile, are luncheon meat, meat loaf, corned beef, beef loaf, vinegar, patis, soy sauce, as well as toilet soap and batteries.

While there are no impending SRP changes, Lopez said there is uncertainty in terms of how the recent killing of Iran’s military leader would affect oil prices.

According to reports, Iran’s military commander, Gen. Qasem Soleimani, was killed in Iraq on Friday by a strike ordered by US President Donald Trump, citing the general was plotting attacks on American diplomats and military personnel.

Following Soleimani’s death, the Trump administration has warned Iran could retaliate.

Lopez said such might be discussed on the side during the Cabinet meeting to be held today.

“The best you can do is positioning of supply and you can position only to a certain extent,” he said.

When the oil facilities were hit by a series of explosions in Saudi Arabia last year, he said prices did not surge because of assurances of available supply.

“We just need that kind of assurance from the other supplier. While we don’t have that, you’re just like other countries vulnerable to the world oil price,” he said.

‘Suspend higher fuel excise tax’

Meanwhile, organized labor yesterday pressed for the suspension of the imposition of additional tax on petroleum products.

Buklurang ng Manggagawang Pilipino (BMP) chair Leody de Guzman said suspending the tax package under the TRAIN Law will cushion the impact of rise in inflation resulting from the US-Iran conflict.

He said the Duterte administration should protect consumers as well as overseas workers by “quickly and decisively” shielding them from inevitable price hikes on basic goods.

“The President should quit dilly-dallying and immediately issue an executive order that will suspend the collection of excise and value added taxes on oil to avert inflationary impacts on commodities. He must have the foresight and diligence to act swiftly on behalf of our struggling countrymen” De Guzman said.

According to him, any increase in prices would be harsh to workers, many of whom are already suffering from low wages.

De Guzman warned that a full blown US-Iran conflict may push global crude oil prices to $80 per barrel, which will have a compounded and multi-faceted effect on the local economy. 

The ACTs OFW Coalition said the US-Iran tension could also endanger the lives and jobs not only of land-based Filipino workers but also seafarers.

Hundreds of Filipino seafarers are working in oil and gas tankers navigating through the Strait of Hormuz daily, the group said, adding that Iran may attack Western merchant ships passing the strategic waterway. – With Mayen Jaymalin