MANILA, Philippines — The price of rice has increased by P1 to P2 per kilo nationwide starting in the third week of January, allegedly as a consequence of the government’s Tax Reform for Acceleration and Inclusion (TRAIN) measure.

“The price monitoring of the Philippine Statistics Authority (PSA) has noted rice price hikes across the country,” the Kilusang Magbubukid ng Pilipinas (KMP) said in a statement yesterday.

KMP cited the PSA as having reported an average of P1 per kilo increase for special and premium rice, P1 per kilo increase for regular well-milled rice, and P2 per kilo for premium well-milled rice.

“The PSA also noted an upward trend in the wholesale and retail prices of well-milled rice and regular milled rice this January compared to rice prices a year ago,” KMP said.

For well-milled rice, a P3 per kilo increase was noted in Kidapawan City and P2 per kilo increase in the National Capital Region and Naga City, the PSA report said.

KMP added that PSA also noted price hikes ranging from P.50 to P3 per kilo of regular milled rice were observed in six regional centers nationwide.

The prices of other food agricultural produce such as beef, meat and pork lean meat increased by as much as P10 per kilo. Prices of dressed chicken increased by P2 to P20 per kilo. Market prices of fish and vegetables also increased, the KMP quoted PSA.

“These price hikes are the result of the cumulative hike in petroleum prices since Jan. 1, when TRAIN became effective. This week, oil prices will once again increase according to oil companies,” KMP said.

KMP chairman Danilo Ramos warned that “this unending cycle of price hikes will not stop as long as TRAIN is in effect. It will only continue to worsen the economic hardship of Filipinos.”

The farmers group also demanded that the government “strictly implement a total price freeze in Albay province where the erupting Mayon volcano is located.”

“National agencies and LGUs in Albay should strictly monitor the prices of commodities in calamity-affected areas to avoid overpricing. Agencies should provide relief and rehabilitation assistance,” Ramos said.

KMP and the Bicol Movement for Disaster Response are continuously seeking assistance for farmers affected by Mayon’s eruption, he added.

KMP reported that as of Jan. 28, there were 28,885 families or 89,109 individuals staying in evacuation centers.

Meanwhile, motorists will see another round of prices hikes on all fuel products this week, Department of Energy (DOE) undersecretary Felix Wimpy Fuentebella said in an interview yesterday.

However, Fuentebella declined to give more information as to how much the increase will be after Energy Secretary Alfonso Cusi issued a policy directing oil companies to explain the weekly price movements of petroleum products.

This would be the seventh consecutive week diesel and kerosene prices will be raised and the third straight week for gasoline.

Based on the agency’s monitoring, Fuentebella added that comments from Saudi Arabia that the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producers could extend their production cuts beyond 2018 propped up global oil prices last week.

Adding to the upward pressure was the global economic growth and expectations of robust global oil demand.

US crude supplies were reportedly lower by 1.1 million barrels at the end of trading Jan. 19, according to the US Energy Information Administration, pushing oil to hit $71 a barrel last Thursday for the first time since 2014.

Reuters also reported that global oil prices settled higher last Friday with crude also posting a weekly gain as a weaker US dollar underpinned prices.

Earlier, Sen. Sherwin Gatchalian proposed to review the Oil Deregulation Law to impose stricter monitoring of oil inventories and price hikes and of harsher penalties for non-compliant oil companies and negligent government agencies that should monitor price movements.

The DOE has been tightening its watch on oil companies since the start of the year in light of the implementation of TRAIN.

The DOE earlier said the new excise tax on petroleum products should be applied starting Jan. 1 but not including old stocks, meaning the increase in fuel prices under the new tax regime should only be implemented 15 days after the start of the year since oil firms have a 15-day minimum inventory requirement.

So far, it has issued show cause orders against at least 20 oil retailers that implemented higher prices due to TRAIN.

Reportedly, there have been several oil retailers that implemented the TRAIN excise tax that have yet to be validated by the agency.

Under the TRAIN, gasoline will have a higher excise tax from P4.35 per liter to P7 per liter while new tax rates of P2.50 per liter will be imposed on diesel, P3 per liter on kerosene and P2.50 per liter on auto liquefied petroleum gas (LPG).

Based on DOE estimates, gasoline prices are expected to have an additional P2.97 per liter, diesel with P2.80 per liter, kerosene with P3.36 per liter, LPG for motor vehicles with P2.80 per liter and LPG for household with P1.12 per kilo.