Law Summary
Rationale for Price Adjustment
- Increases in production costs have severely affected cement manufacturers' ability to supply cement under the existing price ceiling.
- Recent oil price hikes, water and power rate adjustments, and increased minimum wages have exacerbated production cost problems.
Approval and Authority for Adjustment
- The NEDA Board and the Cabinet have approved the new price ceiling during meetings held on March 14, 1979.
- This adjustment aims to establish a balance between prices, incomes, and wages to encourage cement production and maintain supply.
Basis and Support for the Price Ceiling Increase
- Multiple studies by government agencies such as the Ministry of Industry, the Philippine Cement Industry Authority, the Price Stabilization Council, and a private firm (Sycip Gorres and Velayo) have recommended this adjustment.
Legal Instrument and Implementation
- The adjustment is ordered by the President of the Philippines, exercising constitutional powers.
- The adjustment is to take effect immediately, setting the price ceiling at P20.00 per 40 kilo bag, ex-factory.
Objective of the Directive
- To encourage cement manufacturers to continue production despite rising costs.
- To ensure that the supply of cement remains adequate.
Scope and Application
- The price ceiling applies specifically to cement priced ex-factory.
- This Order applies to all cement manufacturers and relevant stakeholders in supply and price regulation.