The Department of Trade and Industry (DTI) has reminded business establishments that prices of basic necessities cannot be increased in areas placed under a state of calamity, warning against price manipulation during disaster relief periods.
The DTI reiterated that under Republic Act No. 7581 or the Price Act, an automatic price freeze takes effect for 60 days once a local government unit or province officially declares a state of calamity, unless earlier lifted by the President.
The policy is designed to protect consumers from sudden or unreasonable price surges and prevent unscrupulous businesses from taking advantage of emergency situations through hoarding or profiteering.
Essential goods covered by the automatic price freeze under DTI jurisdiction include canned sardines, processed milk, instant noodles, coffee, bread, laundry soap, candles and bottled water, among other essential commodities.
The reminder follows recent calamity declarations in Central and Northern Luzon due to severe weather disturbances. Tarlac declared a state of calamity on Sunday, August 30, followed by a province-wide declaration in Pangasinan on Monday, August 31. Price freezes are now actively enforced in both provinces.
Under the Price Act, retailers who fail to comply with the automatic price freeze face administrative fines ranging from P5,000 to P1 million, as well as criminal penalties including imprisonment of one to 10 years. The DTI urged consumers to report any illegal price hikes or overpricing to its local monitoring teams.