Title
Official markup and price ceilings on commodities
Law
Executive Order No. 62
Decision Date
Aug 14, 1945
President Sergio Osmeña of the Philippines issues Executive Order No. 62 to establish official markups for wholesalers and retailers of various commodities, setting reasonable ceiling prices to prevent excessive profits and combat speculation and profiteering. The order includes a list of ceiling prices for commodities and outlines penalties for violations, repealing conflicting orders and taking effect on August 14, 1945.

Law Summary

Fixed Ceiling Prices for Specific Commodities

  • Set maximum retail prices for various essential goods such as alcohol, bread, canned meat, grains, flour, canned milk, salt, sugar, and more.
  • Prices detailed per unit of measurement (liter, loaf, tin, cavan, kilo, piece).

Markups Allowed for Wholesalers and Retailers

  • Prescribed specific markups over cost for wholesalers and retailers across multiple commodity categories.
  • Categories include bulk food, canned products, bread, building materials, textiles, drugs, liquor, jewelry, tobacco, machinery, and others.
  • Percentage markups differ between wholesalers and retailers, generally higher for retailers.

Computation of Ceiling Prices

  • Wholesalers’ ceiling price equals the landed cost plus allowed markup.
  • Landed cost includes CIF value plus charges like arrastre, discharge, and delivery to storage.
  • Retailers’ ceiling price equals wholesaler’s invoice price plus transportation expenses and allowed markup.

Special Provisions on Sales

  • Wholesale sales directly to industrial consumers limited to wholesaler’s markup only.
  • Wholesalers performing retail functions may apply both markups.
  • Additional transportation costs outside Manila or port jurisdiction allowed to increase ceiling prices.
  • Sales using units of measure other than those specified may be presumed overpriced unless proven otherwise.

Penalties for Violation

  • Imprisonment of 15 days to 6 months, or
  • A fine of ₱50 to ₱1,000, or
  • Both penalties at the court's discretion.
  • Applies to vendors or store management who sell above ceiling prices or withhold goods for profiteering.

Repeal of Conflicting Orders

  • All previous Executive Orders or Emergency Control Orders inconsistent with this Order are repealed.

Effectivity

  • The Order takes effect two days after its promulgation on August 14, 1945.

This framework ensured control over essential commodity prices during an emergency period, protecting consumers and maintaining market stability.


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