The Department of Trade and Industry (DTI) said a freeze in the prices of basic and prime goods is in effect in four towns and one city in Pampanga which were placed under a State of Calamity due to damages brought by monsoon rains.
They are the City of San Fernando (since August 16), and municipalities of Sto Tomas (since August 16), Macabebe (since August 17), and Minalin (since August 17).
“Under a state of calamity, an automatic price control is implemented as contained in Section 6 of Republic Act 7581 otherwise known as the Price Act as a preventive measure to avoid chaos that may result from overpricing of goods such as processed milk, canned goods, coffee, laundry soap, detergent, candles, bread, and salt during times of calamities,” DTI Regional Director Judith Angeles said.
Hence, the prices of commodities in the mentioned areas excluding agricultural products should remain at levels prior to the calamity.
“Upon declaration of state calamity by the local government, a price control can be implemented for the duration of 60 days unless lifted sooner by either the local Sanggunian or by the President of the Republic of the Philippines,” Angeles added.
Also, local governments and provincial DTI offices can adjust prices to reflect additional operational costs or the costs of bringing the products in the market.
However, this still needs the approval of either the National Price Coordinating Council or the President.
The adjusted prices must be published in newspapers of national circulation.
Angeles warned businessmen of the penalty for profiteering in price freeze areas – up to P1 million in fines and/or imprisonment of one to five years.
If the case is hoarding, violators can face up to P2 million in fines and/or imprisonment of 5 to 15 years. (PIA 3)