DTI mulls price freeze on construction materials

MANILA, Philippines – To hasten recovery efforts in areas hardest hit by floods, the Department of Trade and Industry (DTI) is considering expanding the coverage of a recent price freeze order to include construction materials.

DTI Undersecretary Zenaida Maglaya said the agency would initially come out with the updated suggested retail prices of construction materials such as cement, plywood, steel bars, hollow blocks and nails to ensure unwarranted price increases.

“Since the prices of construction materials have been stable, we would have to see if there is impending threat of price movements that may trigger us to recommend mandatory price control. We would continue to monitor the situation.”

Maglaya recalled that the agency ordered prices of construction materials frozen post-tropical storm Ondoy in 2009 to provide relief to flood victims who had to repair their badly damaged homes.

On Wednesday, August 8, a price control on basic goods was imposed in at least a dozen areas placed under state of calamity due to heavy flooding brought about by nonstop rain. The areas include Cainta and San Mateo in Rizal, Laguna, Zambales, Malabon, Bataan, Pampanga, Malabon, Navotas and Valenzuela. Prices of basic goods must be kept at their pre-August 7 levels for 60 days, said Maglaya.

Maglaya urged supermarket owners to coordinate with their suppliers when stock levels are going down so as not to cause panic among consumers.

“Manufacturers should not take advantage of the situation,” she said.

Traders found violating the price control can face up to 10 years jail time and a fine of up to P10 million. – Rappler.com