The Federation of Philippine Industries (FPI) on Thursday sought for consultations between the government and the private sectors before the former imposes any order to slash the prices of goods amid global cuts in fuel prices.
FPI Chairman Jesus L. Arranza told reporters on Thursday that the Department of Trade and Industry (DTI) should talk to the business community first, particularly in the transportation and logistics sector, to reiterate the effect of the declining oil prices.
Early this week, Trade Secretary Gregory L. Domingo called on producers of goods and services for price adjustments realizing the effect on transportation cost of the declining pump prices in the world market.
Arranza, however, said the Department of Trade and Industry should meet first with the truckers who are collecting higher fees due to the Manila port congestion.
He added that the price adjustments should be a “chain reaction” than directly ordering the manufacturers to slash prices of goods and services.
He also mentioned that aside from fuel cost, other costs affecting prices of goods include raw materials, labor and processing cost, which are not directly affected by declining oil prices.
“There are many other cost components. The DTI should talk to the NPCC [National Price Coordinating Council] first. We, manufacturers, will voluntarily give rollback on prices if we know that we should,” Arranza said.
Based on data of the energy department, average oil prices in the local market have gone down by about 20 percent this year—from P44.63 per liter in January to P36.71 in November.
The declining oil prices were pushed by the decision of world’s oil producers’ cartel Organization of Petroleum Exporting Countries to maintain production at 30 million barrels per day.
This immediately pulled down the price of the benchmark Brent crude to $72 per barrel.
PNA