En ab l i n g B u s i n e s s , Em po we r i n g Co n s u m e r s

The Price Act

R.A. 7581
 Enabling Business,
Empowering Consumers

THE PRICE ACT (R.A. 7581)

An Act providing protection to consumers by
stabilizing the prices of basic necessities and
prime commodities and by prescribing measures
against undue price increases during emergency
situations and like occasions.

Signed into Law: 27 May 1992

Effectivity Date : 07 June 1992
 Enabling Business,
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Price Act…page 2

THE PRICE ACT (R.A. 7581)

BASIC POLICY:
◊ Ensure the availability of basic necessities and
prime commodities at reasonable prices at all times
without denying legitimate business a fair return on
investment.
◊ Provide effective and sufficient
protection to consumers against
hoarding, profiteering and cartel
 Enabling Business,
Empowering Consumers
Price Act…page 3

THE PRICE ACT (R.A. 7581)

To implement the basic policy, the state shall:
◊ Develop and promulgate measures to promote
productivity in basic necessities & prime commodities
and to stabilize prices at reasonable level;
◊ Develop an improved and efficient transport &
distribution system
◊ Institute appropriate penalties for price
Manipulators
◊ Establish a mechanism that will readily protect
consumers from inadequate supply and
unreasonable prices increases during calamities etc.
 Enabling Business,
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Price Act…page 4

THE PRICE ACT (R.A. 7581)

PROVIDES PROTECTION TO
CONSUMERS BY:
◊ Stabilizing the price and supply of basic
necessities and prime commodities

◊ Prescribing measures against undue

price increases especially during
emergency situations and like occasions
 Enabling Business,
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Price Act…page 5

THE PRICE ACT (R.A. 7581)

Implementing Rules and Regulations (IRR)
(DTI, DA, DOH, DENR Joint Administrative Order No. 1
Series of 1992)
Signed : 15 February 1993
Effectivity : 20 March 1993
Implementing Agencies (IAs)
◊ Dept. of Trade and Industry (DTI)
◊ Dept. of Agriculture (DA)
◊ Dept. of Health (DOH)
◊ Dept. of Environmental and Natural Resources (DENR)
 Enabling Business,
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DEPARTMENT OF TRADE
AND INDUSTRY Prime Commodities

Processed &
Flour Cement Toyo Vinegar Canned beef

Processed & School Supplies Patis Toilet Soap

Canned pork

Hollow Blocks Batteries Light Bulbs Construction Nails Paper

 Enabling Business,
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DEPARTMENT OF TRADE
AND INDUSTRY
Basic Necessities

Candle
Coffee

Processed Milk
Canned Fish
Detergent

Noodles
Bread Bottled Water
Laundry Soap
 Enabling Business,
DEPARTMENT OF Empowering Consumers

AGRICULTURE
Basic Necessities

Cooking Oil Sugar

Rice Corn

Egg
Fish Beef & Poultry Meat Fresh Milk
(Fresh)

Fresh Pork Fresh Vegetables Root Crops

 Enabling Business,
DEPARTMENT OF Empowering Consumers

AGRICULTURE Prime Commodities

Dried Pork Garlic Herbicides

Fresh Fruits

Fertilizer
Swine & Cattle Feeds Other Fresh
(Chemical & Organic) Pesticides
Dairy Products

Onions
Dried Beef & Poultry Meat Veterinary Products
For Poultry
 Enabling Business,
DEPARTMENT OF ENVIRONMENT Empowering Consumers
AND NATURAL RESOURCES
Firewood Charcoal
Basic Necessities

Prime Commodities

Plywood Nipa Shingles Sawali Plyboard

DEPARTMENT OF HEALTH
Drugs classified as essential and non-essential by the DOH
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POWERS AND FUNCTIONS OF IAS

◊ May issue Suggested Retail Price (SRP) whenever
necessary
◊ May determine, recommend and enforce price ceiling/
control whenever necessary
◊ May require producers, manufacturers, distributors and
retailers of basic necessities and prime commodities to
submit production and inventory reports
◊ Exclusion of a particular class or type of commodity upon
petition of concerned parties and after conducting public
hearing and with approval of the President
◊ Creation of Monitoring Task Force
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MONITORING SYSTEM
◊ Conduct regular monitoring in order to:
◊ develop a database on prices
◊ identify and investigate causes of market
and price irregularities
◊ provide basis for establishing SRPs and
ceiling prices
◊ determine price trends
◊ Each IA shall monitor at least monthly.
Frequency may be increased as the need arises
◊ Monitoring reports shall contain price analyses
of prevailing price vs. prevailing price 3 months
ago; vs. a month ago; vs. a year ago, etc.
IRR of RA 7581 Series 1993
Rule VI. Creation of the Local Price Coordinating Council, Its
Powers and Functions
Section 1. There shall be created, a Provincial or City Price Coordinating Councils
composed of the following:

Chairman: Provincial Governor or City Mayor

Vice-Chairman: DTI Provincial Director or his duly authorized representative
Members: One (1) representative each from DA, DOH, DENR, DOTC, DOJ,
NEDA, consumers, agricultural producers, trading, manufacturing, and retail
sectors.

In the absence of provincial offices, coordination shall be made with the respective
regional offices of the above-mentioned implementing agencies.
 Enabling Business,
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LPCC Composition
LPCC CHAIRMAN
Governor/Mayor

VICE CHAIRMAN
DTI Provincial Director

DA DOH DENR DOTC DOJ Consumer Agricultural Manufacturing Retail

NEDA Sector Producer Sector Sector Labor
Sector Sector
Section 2. The Chairman of the LPCC shall decide who among the representatives of
agencies enumerated above will sit as members of the LPCC. The Chairman shall appoint
the sectoral representatives.

Section 3. City/Municipal Price Coordinating Councils may be created whenever the

City/Municipal Mayor deems it necessary. The City/Municipal Mayor shall sit as the
Chairman and membership thereof shall be chosen from among the local counterparts
of the aforementioned agencies.

Section 4. The sectoral representatives of the Provincial, City or City/Municipal Price

Coordinating Council shall be appointed by the Chairman upon nominations by their
respective provincial, municipal and city chamber of commerce or similar trade
organization and by consumer organization preferably one duly accredited by the DTI.
Section 5. Powers and Functions

1. Coordinate and rationalize the programs to stabilize prices and

supply of member agencies in the respective provinces, municipalities
and cities.
2. Recommend to the National Price Coordinating Council or to
the Implementing Agencies suggested retail prices (SRP) and/or the
price ceilings for certain basic necessities and/or prime commodities
in their respective areas.
3. Conduct in-depth analysis on causes for price fluctuations.
4. Recommend action steps to correct unwarranted price
increases and supply shortages.
 Enabling Business,
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MEASURES TO UNDERTAKE
DURING EMERGENCIES
◊ Convene NPCC/ LPCC immediately after the
occurrence of emergency, crisis or state of
emergency
◊ Intensify price monitoring

◊ Activate consumer hotlines

◊ Deputize other government agencies and private

sector, if necessary for assistance in the monitoring,transport,
movement and distribution of commodities.
 Enabling Business,
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Measures…page 2

To ensure equitable supply distribution during emergencies, the IAs

may:
◊ Activate Accredited Retail Outlets
Sell reasonably-priced commodities particularly to
depressed areas

◊ Bulk Buying
Lowers prices by enabling retailers to
purchase directly from suppliers

◊ Bagsakan
Serves as alternate trade centers
for commodities originating from
different points of the country
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TYPES OF PRICE CONTROL

Whenever the President declares an area under a state of calamity,
disaster, emergency, rebellion, war, martial law, or when the privilege of
the writ of habeas corpus have been suspended

Automatic Price Control

◊ If prevailing price is excessive or unreasonable, price
ceiling may be imposed at a price other than the
prevailing price.
◊ Prices of basic necessities are automatically placed
under price control

Mandated Price Ceiling

◊ Whenever the prevailing prices have risen to
unreasonable levels, MPC may be imposed by the
President upon recommendation of implementing agency
Related Laws
1. DILG Memorandum Circular No. 2001-121
- Creation of Local Price Coordinating Council
2. DILG Memorandum Circular No. 2004-75, Series of 2004
-Reactivation of Local Price Coordinating Council (LPCC)
3. DILG Memorandum Circular No. 2008-61, Series of 2008
-Local Price Coordinating Councils and Related Concerns
4. July 23, 2012, RA No. 10623
-An Act Amending Certain Provisions of RA No. 7581

Section 3. Definition of Terms

“(1) ‘Basic Necessities’ are goods vital to the needs of consumers for their sustenance and
existence in times of any of the cases provided under Section 6 or 7 if this Act such as, but not
limited to rice, corn, root crops, bread; bread, fresh, dried or canned fish and other marine
products; fresh pork, beef and poultry meat; fresh eggs; potable water in bottles and containers;
fresh and processed milk; fresh vegetables and fruits; locally manufactured instant noodles;
coffee; sugar; cooking oil; salt; laundry soap and detergents; firewood; charcoal; household
liquefied petroleum gas (LPG) and kerosene; candles; drugs classified as essential by the
Department of Health and such other goods as may be included under Section 4 of this Act.
Continuation

Related Laws
4. July 23, 2012, RA No. 10623
-An Act Amending Certain Provisions of RA No. 7581

Section 3. Definition of Terms

“(8) ‘Prime Commodities’ are goods not considered as basic necessities but are essential to
consumers in times of any of the cases provided under Section 7 of this Act such as, but not
limited to, flour; dried, processed or canned pork, beef and poultry meat; dairy products not
falling under basic necessities; onions , garlic, vinegar, patis, soy sauce; toilet soap; fertilizer,
pesticides and herbicides; poultry, livestock and fishery feeds and veterinary products; paper;
school supplies; nipa shingles; sawali; cement; clinker; GI Sheets; hollow blocks; plywood;
plyboard; construction nails; batteries; electrical supplies; light bulbs; steel wire; all drugs not
classified as essential drugs by the Department of Health and such other goods as may be included
under Section 4 of this Act.”
Continuation

Related Laws
4. July 23, 2012, RA No. 10623
-An Act Amending Certain Provisions of RA No. 7581

Section 11. Price Coordinating Council. There is hereby created a Price Coordinating
Council, hereinafter referred to as the Council, to be composed of the following
members:
“(1) The Secretary of Trade and Industry, as Chairman;
“(2) The Secretary of Agriculture
“(3) The Secretary of Health
“(4) The Secretary of Environment and Natural Resources;
“(5) The Secretary of Local Government;
“(6) The Secretary of Transportation and Communications;
“(7) The Secretary of Justice;
“(8) The Secretary of Energy;
“(9) The Director General of the National Economic and Development Authority;
“(10) One (1) representative from the consumers’ sector;
“(11) One (1) representative from the agricultural producers’ sector;
“(12) One (1) representative from the trading sector; and
“(13) One (1) representative from the manufacturers’ sector.
Enabling Business,
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