Consumers are greatly affected as the prices of oil and retail rice continue to increase.

According to government data, the retail price of rice in the Philippines increased by between 4% and 14% this month as a result of rising domestic and international farmgate prices, which increased pressure on food inflation.

Local rice inflation reached 4.2% in July, the highest level since 2019 due to the continuous increase in the cost of the nation’s staple food, signaling mounting pressure on the primary importer of the grain to quickly increase its stockpile.

At present, the country is preparing for the effects of harvests brought on by dry weather induced by the El Niño phenomenon, which the government hopes won’t be severe and won’t further increase supply risks.

As part of its efforts to bring down prices, the Department of Agriculture (DA) stated that it hoped to obtain “better terms” for an additional 300,000 to 500,000 metric tons of rice imports from private traders this year.

Additionally, DA representatives stated that they were looking at neighboring countries like Vietnam and Thailand to sell their excess rice supply to private-sector importers.

To expedite the importation of rice until February 2024, the Agriculture Department is also considering using the super green lane at the Bureau of Customs.

Lawmakers criticized the nation’s reliance on imported rice and emphasized the need to increase rice production and provide support for farmers.

However, despite government assurances, former Agriculture Secretary Leonardo Montemayor warned that if supply is not increased, we should expect rice prices to rise, possibly until September.

The head of the Federation of Free Farmers, Montemayor, predicted that rice prices could rise to P60 per kilo.

“I think it’s possible,” he said. “Lalo na next month kasi napakanipis na po nung magiging supply picture natin lalo pa’t kung hindi makadating ‘yung additional imports by the private sector.”

Montemayor also pointed out that recent administrations had actually witnessed an increase in rice imports.

Fuel prices increased, renewing calls for oil regulation

For the eighth week in a row, fuel prices have increased as oil companies announced they would implement hikes beginning on August 29.

Pilipinas Shell, Cleanfuel, and Seaoil announced on Monday that the price of gasoline would increase by P0.30 per liter and the price of diesel by P0.70 per liter.

Kerosene prices will increase by P0.80, according to Seaoil and Pilipinas Shell.

The changes will take effect for Cleanfuel on Tuesday at 4:01 p.m., while the increase for Seaoil and Pilipinas Shell will start at 6 a.m.

On the other hand, Petron has not yet issued an advisory about the impending price increase.

The consecutive surge in oil prices has renewed calls by transport and commuter groups to concerned legislators for the repeal of the Oil Deregulation Law, which is being blamed for fuel and commodities hikes, as well as for expanding the voucher system for public road vehicles.