Moral suasion

In its monthly monitoring of the consumer price index (CPI), the Philippine Statistics Authority (PSA) reported on Tuesday the country’s inflation rate spiked to 4.1 percent in March. It nearly doubled from the previous month’s inflation rate of 2.4 percent and the year-ago level of 1.8 percent. The latest inflation rate surpassed the government’s target range of two-four percent average rise in CPI for this year.

PSA chief and national statistician Dennis Mapa explained the increase in inflation was driven up by the rapid rise in costs in the transport sector and price increases of food products. Attributed to the oil supply crisis caused by the war in the Middle East (ME), Mapa warned the uptick in inflation is expected to continue in the coming months while the hostilities show little signs of cessation even after the two-week truce agreed by the US, Israel and Iran.

Department of Trade and Industry (DTI) Secretary Ma. Cristina Roque “acknowledged” the latest PSA inflation report. “But for us at the DTI, we can announce there will be no price increase for basic necessities and prime commodities until April 30,” Roque declared. “We acknowledge there are many brands being sold out there but the list of the DTI has 205 products. So it is important for the consumers to get the list so that they will know the prices that are under control and monitored by us,” the DTI secretary pointed out.

According to Roque, these 205 products are daily monitored by the DTI all over the country from Regions 1 to 18, with the help of local government units (LGUs). Collectively called by the DTI as basic necessities and prime commodities (BNPCs), the 205 items include canned sardines, canned meat, coffee, processed milk, instant noodles, condiments, laundry soap, toilet soap, candles, salt, battery, bottled water and “Pinoy” bread.

At the Kapihan sa Manila Bay news forum last Wednesday, Roque cited this is actually an extension of the original April 15 commitment of BNPC producers and manufacturers to keep their prices unchanged. The DTI secretary welcomed this initiative from the private sector in response to government appeals amid the “unusual and challenging times” in the aftermath of the ME conflict. Roque lauded the unilateral move to observe price freeze of BNPCs being sold by wholesalers and retailers.

Such willingness of BNPC manufacturers and producers came in even while the local pump prices of gasoline, diesel and other petroleum products have risen to historic highs for the past few weeks since the ME conflict erupted last Feb. 28. Call it moral suasion or the power of persuasion but the DTI secretary has so far convinced manufacturers and traders of food and other basic commodities to hold off raising their prices for now.

Asked where the virtue of charity comes from, Roque retorted: “Maybe some, if I may say, maybe they all want to share or to help or to assist the consumers in their own way by keeping the prices stable.”

Perhaps, out of the goodness of their hearts. Thank God for that.

Pressed if there is any quid pro quo for such voluntary price freeze, Roque swore there was none given, none asked. Herself an entrepreneur before she joined public service, Roque explained the producers and manufacturers have existing inventories that enable them to keep their prices at present levels at least up to the end of this month.

The DTI secretary reassured further the consuming public there is enough supply of BNPCs all over the country. So there should be no reason for people to hoard, or go into panic-buying mode, she pointed out.

To keep purchases within their budget, Roque advised the public to look for the DTI list of these 205 BNPCs posted in all groceries and supermarkets, or look for it in the DTI website. To protect them from over-pricing, profiteers, hoarders or sellers of sub-standard products, Roque disclosed the DTI’s Consumer Care hotline 1-384  is open to the public 24/7.

She reiterated the DTI warning against those engaged in profiteering or hiking prices by more than 10 percent without justification or hoarding would face fines up to P5 million and potential jail time up to 15 years.

After April 30, Roque is not dismissing possible price hike petitions that will be filed at the DTI. She conceded some manufacturers have already been affected by rising logistics and input costs. The DTI chief vowed though to continue to meet every week with producers and manufacturers.

Is the government’s power of persuasion less effective with the so-called “Big 3,” namely Petron, Shell and Chevron and the small players of the local oil industry? What say you, Department of Energy (DOE) Secretary Sharon Garin?

Both Roque and Garin are members of the Cabinet cluster recently created by President Ferdinand “Bongbong” Marcos Jr. (PBBM). Called the UPLIFT committee, or Unified Package for Livelihoods, Industry, Food and Transport on the ME conflict, it was created last March 24 when PBBM issued Executive Order 110 which, among other things, declared a state of national energy emergency in the Philippines.

As part of the UPLIFT committee, the DTI is “directed to monitor and when warranted, implement remedies to address excessive or unreasonable price increases on basic necessities and prime commodities and implement support program for MSMEs (micro-small-medium enterprises).”

Since the DOE always concedes being powerless by the Oil Deregulation Law, lawmakers are now pressing to do remedial legislation for the government. If not for now, but for future oil price shocks.

Not to be outdone, senators constituted their own Senate committee dubbed as Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) to also address the problems spawned by the ME conflict. The House of Representatives, on the other hand, organized its own Legislative Energy Action Development (LEAD) Council and started public hearings on possible response measures to the ME crisis.

Other than mouthing the official line invoking the Oil Deregulation Law, Garin should perhaps try also moral suasion with oil players.