QuestionsQuestions (LETTER OF INSTRUCTION NO. 834)
It is an executive issuance that directs a specific adjustment of the regulated (ceiling) price for cement, thereby setting a binding maximum ex-factory price for cement manufacturers subject to the price stabilization framework referenced in the LOI.
It cited increases in the costs of production, and further aggravating expected increases due to oil price hikes, adjustments in water and power rates, and the minimum wage increase.
P20.00 per 40-kilo bag, ex-factory.
It refers to the price at the factory level, i.e., before added costs associated with distribution, delivery, or other downstream charges.
It stated that the NEDA Board and the Cabinet approved the adjustment on March 14, 1979, and that numerous studies recommended it through the Ministry of Industry (MI), the Philippine Cement Industry Authority (PCIA), the Price Stabilization Council (PSC), and a private firm (Sycip Gorres and Velayo).
It served as a stated basis for the executive action, showing that economic policy planning and Cabinet-level decisions supported the price ceiling adjustment.
It cites 'numerous studies' by the MI, PCIA, and PSC, and even a private firm, implying that the adjustment was not arbitrary but grounded on data and recommendations.
The LOI was addressed to the Chairman of the Price Stabilization Council and 'All Concerned,' implying that PSC and other implementing/affected agencies would take steps to give effect to the new ceiling.
It indicates the policy rationale that the adjustment should balance regulated prices with manufacturers’ income and labor-related costs (wages), aligning price controls with broader economic and social considerations.
It states that the President acted 'by virtue of the powers vested in me by the Constitution.'
Courts and parties may use the stated recitals (cost increases, oil/power/wage adjustments, maintaining supply) to interpret that the issuance intended to respond to production-cost pressures and ensure market supply under regulation.
The approval was on March 14, 1979, while the LOI was signed/issued on March 23, 1979. This matters for determining timelines of approval versus effectivity and for issues like compliance periods and possible backdating questions.
The LOI is addressed to the Chairman of the PSC, suggesting that PSC is the primary implementing body for enforcing or operationalizing the price ceiling.
It emphasized encouraging cement production and maintaining adequate supply, i.e., achieving supply stability while allowing adjustments to production cost pressures.
Because the LOI sets a regulated ceiling price, selling above it could implicate violations of price stabilization/regulation rules and subject the manufacturer to administrative and possibly penal consequences depending on the applicable statutes and enforcement regime in force at the time.