Sunday, October 17, 2021
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DMAP: No price increases from members

DISTRIBUTION managers have no plans to increase prices just yet despite the imposition of the additional 2% value-added tax (VAT) earlier this month, the continuing volatility in fuel prices, and the impending increase in trucking rates.Distribution Management Association of the Philippines (DMAP) vice president John Guillermo told PortCalls that association members will continue to hold off any price increase as long as they can."There are no planned price increases as of yet. We are still okay despite shouldering the additional cost brought about by the VAT," Guillermo said.He added that the measure has had minimal effects so far on business save for fuel spending brought about not only by Republic Act 9337 (VAT law) but also by the volatility of oil prices in the world market.However, Guillermo does not discount a price increase particularly now that trucking rates are set to increase by 30% as early as this month."These are pass-through costs. We have no choice but to pass them on to consumers. But we still have to evaluate the effects of this impending increase in trucking rates on our business, " Guillermo said.Earlier, DMAP anticipated the additional VAT will render a major blow to members’ businesses, triggering price increases due to higher fuel and shipping costs.


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