checkmate

Prices of sin products creeping up

It was bound to happen sooner rather than later, but nobody expected it to happen this soon.



An informal survey taken by The Manila Times revealed that the prices of “sin” products like cigarettes and alcoholic beverages have started to go up this last week of the year.

The price hikes have not been dramatic, to be sure. But there is no reason for retailers to jack up their prices when they are still selling their old stock. Perhaps they believe that no one will raise a howl over their move. Their logic goes thus: since the prices of these products will go up very soon anyway, why not increase them now? What difference will a few weeks or a couple of months make anyway?

To the poor consumer, it makes all the difference in the world. An employee earning minimum wage will feel the pinch of the new prices where it hurts most—his daily budget. What more the unemployed or the underemployed? Telling them to consume less sin products is no answer as they will continue to buy what they want just the same.

In the ubiquitous convenience stores spread all over Metro Manila, for example, the retail price of cigarettes have gone up by between eight and 10 percent, on the average. Other sin products have also gone up marginally, but this can be a sign of further increases in the near future.

Wholesalers and retailers may only be testing the waters for now to determine how much consumers are willing to shell out to satisfy their vices. Thus, a P1 increase over a bottle of gin, for instance, sets the stage for another P1 hike next week, and the week after that, and the week after that, ad infinitum. Only when their sales drop will the sellers determine that they have gone too far, and must roll back their prices.

This could well be the time for consumer advocates to speak up and hopefully prevent runaway increases in all the products affected by the sin tax law signed by President Benigno Aquino 3rd earlier this month.

The rich may easily afford the higher prices, while the middle class will only be irritated by the price hikes, but it is the poor who comprise the biggest chunk of the market who will have to pay more for their favorite products.

Editorials

Conduct unbecoming

Published : Friday January 18, 2013   |  Category : Editorials   |  Hits:46

It’s not the first time it’s happened, and we don’t suppose it will be the last. But a few of our senators have again engaged in conduct unbecoming of their exalted position. Read more

Have crimes really declined?

Published : Thursday January 17, 2013   |  Category : Editorials   |  Hits:296

THE other day, President Benigno Aquino 3rd proudly claimed at a formal affair in Intramuros that crime in our country has declined substantially. Read more

Attempts to emasculate the Court Administrator

Published : Wednesday January 16, 2013   |  Category : Editorials   |  Hits:474

CHIEF Justice Ma. Lourdes Sereno, we reported on page 1 yesterday, is still pushing for the decentralization of the Office of the Court Administrator, despite being rebuffed earlier by the Supreme Court en banc. Read more

Persecution and terrorism

Published : Wednesday January 16, 2013   |  Category : Editorials   |  Hits:318

The moves to persecute Supreme Court Administrator Midas Marquez will surely backfire. The President’s popularity rating is still very high but has been going down, albeit slightly. Making a martyr of Mr. Marquez will cause the President’s approval r... Read more

Poverty, unemployment and our boom economy

Published : Tuesday January 15, 2013   |  Category : Editorials   |  Hits:510

ONCE more the latest report of the Social Weather Stations (SWS)—which, after BusinessWorld had exclusive first rights to it yesterday, becomes ccessible to all today—shows that more Filipino families see themselves as poor (“mahirap”). Read more

Hosting Powered and Design By: I-MAP WEBSOLUTIONS, INC