BY DARWIN G. AMOJELAR SENIOR REPORTER

THE bill for post-typhoon reconstruction may shoot up on account of the lifting of a government-imposed price cap on fuel products.

Latest data from the National Statistics Office (NSO) showed that wholesale prices of construction materials continued to drop in October largely because of cheaper fuel products.

This was despite a string of typhoons that flooded half of the National Capital Region (NCR), and damaged infrastructure and farm output.

The NSO said the wholesale prices of construction materials in the NCR fell 2.2 percent in October from the 21.6-percent hike in the same period last year.

In September, prices of construction materials had dropped by a faster 3.5 percent.

The agency attributed the drop in prices to the decrease in the price of fuels and lubricants by 1.3 percent in October from the 0.8-percent decline in September.

Fuel prices, however, are widely expected to spike after Malacañang lifted Executive Order (EO) 839, which pegged the ceiling to October 15 levels in areas affected by the typhoons, particularly NCR, Central and Northern Luzon.

The price control was aimed at helping hard-hit households and businesses in their post-typhoon reconstruction efforts.

The Palace on Friday announced that it would lift the EO 839 effective Monday.

Oil companies have yet to raise prices of fuel products despite earlier claims that their under recoveries had grown because of the EO 839. (see story on page A1)

Industry officials had said they would have to increase prices by P4.50 to P5.00 per liter to reflect higher import costs prevailing when the EO 839 was in force.

Higher material prices by January

Lito Madrasto, Philippine Contractors Association executive director, told The Manila Times that higher prices of construction materials would be felt by January because of the expected increase in power and transportations costs.

“As you know, the industry used crude oil and gasoline to fuel our power plants,” he said adding that any adjustment in construction material prices would depend on fuel costs.

In its report, the NSO said price declines were noted in plywood, reinforcing steel, and structural steel, while slower annual price gains were observed in wood products, hardware, PVC pipes, G.I. sheets, exterior electrical equipment and supplies, interior electrical fixtures and devices, electrical rough-in materials and UPVC water pipes.

Annual price increments were, however, higher in lumber, paints and cement.

Cement maker Holcim Philippines Inc. said construction picked up in the third quarter despite a “traditionally low season for the cement industry.” The company enjoyed a 30-percent uptick in revenues amid a 2 percent dip in its cost of sales.

It said strong demand would likely persist until yearend. (see story on page B2)
WITH REPORTS FROM BEN ARNOLD O. DE VERA AND EUAN PAULO C. AÑONUEVO