Question & AnswerQ&A (EXECUTIVE ORDER NO. 124)
Republic Act No. 7581, also known as the Price Act, as amended by RA No. 10623, serves as the legal basis for imposing mandated price ceilings on basic necessities during emergencies or calamities.
The President, upon recommendation of the implementing agency or the Price Coordinating Council, may impose a price ceiling during the existence or effect of an emergency or calamity, or any event causing an artificial and unreasonable increase in prices of basic necessities.
Proclamation No. 1021 (s. 2020), which extended the State of Calamity throughout the Philippines due to COVID-19 for one year, justified the imposition of the price ceiling.
The mandated price ceiling covers selected pork products (kasim/pigue, liempo) and dressed chicken.
The mandated price ceiling for pork kasim/pigue is Php 270.00 per kilo.
The price ceiling takes effect immediately upon publication and remains in force for sixty (60) days unless extended by the President upon the recommendation of the Department of Agriculture.
The Department of Agriculture (DA) recommended the imposition of the price ceiling.
The outbreak of African Swine Fever which reduced local pork output is cited as the reason for the significant price increase.
The mandated price ceiling for dressed chicken is Php 160.00 per kilo.
The policy objective is to provide effective and sufficient protection to consumers against hoarding, profiteering, and cartels regarding the supply, distribution, marketing, and pricing of goods during periods of calamity, emergency, and widespread illegal price manipulation.