MANILA — The Department of Justice (DOJ) on Monday said the government must review the Suggested Retail Price (SRP) policy.
In a 16-page report dated June 29, 2015 and prepared by the DOJ-Office for Competition (DOJ-OFC), it found that the present SRP mechanism as set by various government agencies removes incentives to compete on price.
“SRPs are set by various government agencies especially on how retail prices are determined for basic necessities and prime commodities,” DOJ Secretary Leila M. De Lima on Monday said.
“We have pending cases against the rice, garlic and onion cartels that the SRP has failed to prevent or detect,” De Lima added.
The OFC study said there are no adequate rules and guidelines on the imposition of SRP.
Although the Department of Trade and Industry (DTI) may oblige manufacturers, distributors and retailers to provide advance notice for proposed price increases, its requirement to seek clearance for planned price increases negates the recommendatory nature of the SRP.
The DOJ-OFC report stressed that price controls be imposed only during calamities, disasters and similar situations and over basic necessities and prime commodities.
Sy heads the DOJ-OFC. “It is only in certain cases like calamities or emergencies that intervention is essential to prevent abuses by suppliers,” Sy added. (PNA)
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