The Department of Trade and Industry (DTI) yesterday said the implementation of Executive Order (EO) 41 will translate to lower cost of goods while ensuring fast delivery to end-users.
EO 41 signed by President Ferdinand Marcos Jr. on September 25 prohibits local government units (LGUs) from collecting toll fees and charges to all vehicles transporting goods or merchandise while passing through national roads and other thoroughfares not constructed or funded by them.
DTI Secretary Alfredo Pascual, however, said even as the Autonomy Act allows LGUs to charge fees on roads they constructed, government will ensure these are not excessive.
Pascual said the DTI, the Department of Transportation, Department of Public Works and Highways, Department of Finance and the Anti-Red Tape Authority will evaluate existing ordinances to ensure they are consistent with the provisions of autonomy act which allows LGUs them to issue ordinances to impose pass thru fees
“We will ensure they follow the law and these fees are not excessive,” Pascual said in a radio interview.
Pascual reminded LGUs that erring public officials may face administrative and disciplinary sanctions.
According to Pascual, lowering the cost of goods is one of the six objectives of the food logistics agenda.
Pass-through fees range from P875 to P2,500 per truck which is a big expense and adds to cost.
“Prohibiting pass through fees will also hasten the delivery of goods from farms and will ensure these remain fresh when they are delivered to manufacturers, distributors and retailers,” Pascual said.
While no overall study has been done on how much EO 41 would reduce cost of goods, Pascual said based on each product, there is a big impact.
He said sardine manufacturers have cited high logistics cost as one of the reasons they are asking for an increase in the suggested retail price.
Pascual also noted the timing of the issuance of the EO augurs well as this could temper price increases normally observed during Christmas.
