Retailers are warning of another wave of price increases as surging fuel prices, higher electricity rates and a new minimum wage squeeze businesses already operating on thin margins.
“Because of the increase in diesel, electricity and wages, the price of goods will increase,” Philippine Amalgamated Supermarkets Association (PAGASA) Executive Director Steven Cua said.
The latest cost pressures come as global oil prices climb amid heightened tensions in the Middle East. Industry estimates point to diesel prices rising by as much as P10 to P11 per liter and gasoline by P3 to P4, potentially pushing pump prices back to the P80 to P90-per-liter range.
Cua said manufacturers and retailers are expected to reassess prices of basic goods, including bread, canned sardines, sugar, vegetables, meat and other fresh produce, although the size and timing of adjustments will vary from one company to another.
Large companies may be better positioned to absorb part of the higher costs, he said, but small and medium-sized businesses, particularly neighborhood groceries, have far less room to maneuver.
“The big companies can adjust more easily. It’s the medium-sized and small businesses, especially neighborhood groceries, that will feel the greatest pressure,” Cua said.
He urged the government to focus on long-term solutions, including stronger investments in agriculture and domestic manufacturing, to reduce the country’s reliance on imports and make prices less vulnerable to global supply disruptions.
The latest suggested retail price bulletin issued by the Department of Trade and Industry in May already reflected higher prices for several basic and prime commodities, including canned sardines, instant noodles, laundry products, condiments, bottled water and batteries, as manufacturers began passing on higher production, transport and distribution costs.
With fuel, power and labor expenses rising at the same time, retailers said businesses may have little choice but to pass on at least part of the additional costs, raising the risk of another bout of inflation for Filipino consumers.
