By CESAR JOLITO III
A consumer advocacy group has raised concern over what it describes as the persistent imbalance between rapid fuel price increases and the slow pace of price reductions in basic goods and services, even amid recent rollbacks in petroleum products.
The Alliance of Concerned Consumers in Electricity and Social Services (ACCESS) said that, while recent reductions in gasoline and diesel prices have provided temporary relief for transport workers and households, these have not significantly translated into lower prices of basic commodities or utility costs.
ACCESS President Wennie Sancho said the situation reflects what economists call the “rocket and feather effect,” where prices rise quickly when costs increase but fall slowly when costs decline.
Under this pattern, fuel and raw material price hikes are passed on to consumers almost immediately — often within days — while price reductions, when they occur, are delayed or minimal.
The group said this has left consumers bearing higher living costs even after global oil prices ease.
Sancho noted that although fuel rollbacks have been welcomed by transport workers, these have not eased the broader cost-of-living pressures, as prices of goods and services remain largely unchanged.
The group explained that several factors contribute to the slow adjustment of retail prices downward, including business concerns over the temporary nature of rollbacks, operational costs associated with repricing, and the absence of strong pressure or penalties from regulatory authorities.
ACCESS said consumers continue to shoulder the burden when prices increase rapidly but see limited relief when costs decline, resulting in what it described as a “sticky downward” pricing environment.
The group urged authorities to look into mechanisms that could ensure more responsive price adjustments in line with changes in global fuel and commodity costs, saying that the benefits of rollbacks should more effectively reach consumers at the household level.
Despite recent decreases in global oil prices and local fuel adjustments, ACCESS said many families continue to experience unchanged expenses in transport fares, electricity and basic goods, underscoring what it called a continuing gap between market movements and consumer relief./CJ, WDJ