The Department of Trade and Industry (DTI) has come up with the Suggested Retail Price (SRP) for basic necessities and prime commodities to ensure that prices of basic and prime commodities remain stable after the lifting of the price control.

DTI Secretary Peter B. Favila said the SRP includes prices for “Noche Buena” products.

Favila has reminded businesses that as chairman of the National Price Coordinating Council, he recommended the lifting of the price control on basic necessities and prime commodities to President Gloria Macapagal Arroyo banking on the commitment of manufacturers and retailers that there will be discipline in trade.

“This means no hoarding and no profiteering,” emphasized Favila as he warned retailers nationwide to sell within the SRP. Favila has already directed market monitoring teams to probe retailers who are selling products higher than the SRP recommended by the manufacturers.

“If we find out that the manufacturer and/or distributors were the ones passing the goods at prices higher than the SRP, then they will be summoned to explain,” he said.

“Those who will be found selling above the SRP set will be dealt with accordingly, pursuant to Republic Act 7581 or the Price Act,” warned Favila.
“We are not denying these businesses their right to a fair return of investment, which is why the DTI remains open to receiving explanations if costs in the production and sale of these items rise,” said Favila.

He appealed to manufacturers to abide by their commitment of notifying the DTI whenever there are adjustments in SRPs and the reasons for such change.

SRP is defined as the price that manufacturer recommends that the retailer sell the product for. The primary purpose of SRP is for each product to have a widely published price so the consumer can tell he or she is not being ripped off by a ridiculous mark-up or profit margin.

Favila explained that SRPs provide a trigger for government to check on possible price irregularities. DTI may, when the need arises, order retailers to explain why the price of commodities are above the SRP.