To mark this year’s World Consumers’ Day, Inklusibo offers an explainer that examines the current state of poverty in the Philippines, unemployment and lack of livelihood, and meager wages, all while the cost of essential goods continues to inflate. Inklusibo also places emphasis on the privatization of public goods as another burden of basic masses as these “developments” are equivalent to unjust loan agreements with international financial institutions, or to public-private partnerships with huge corporations. The promise of prosperity due to the privatization of public utilities and/or conversion of agricultural lands into highly commercialized areas yields only the opposite: peasants are dispossessed of their lands and are forced into becoming rural-urban migrants. As informal workers, they are pitted against eviction from vending spaces, soaring prices, and meager wages. They are also subjected to housing demolitions and they also lack access to basic social services. Since workers are also consumers, they have no other choice but to make ends meet regardless of the worsening socio-economic crisis where they are the most vulnerable. 

Poverty in the Philippines: Meager Wages and Soaring Prices

According to the Philippine Statistics Authority, the reported poverty incidence in 2023 was 15.5% of the total population, or 17.5 million Filipinos (3 million families). Region IX, or the Zamboanga Peninsula, had the highest poverty incidence.¹ This number represents a decrease compared to the 18.1 million recorded in 2021. It’s worth noting that in 2024, self-rated poverty reached 63% (six out of ten families), the highest in the past 21 years.² Simultaneously, there has been a decline in the minimum monthly income required for a family to consider themselves not poor: ₱15,000 in June, ₱12,000 in September, and ₱10,000 in December of the previous year.² IBON’s initial estimate for 2023 indicated that the 13.7 million poorest families had an income of ₱23,000 or less.

The family living wage (FLW) is ₱1,215 per day to cover the estimated ₱28,500 monthly expenses. The current minimum wage in the NCR is ₱645, which is only 53% of the ₱1,215 FLW. Moreover, the recent ₱30 wage increase is not substantial, as the real wage (adjusted for inflation) significantly lags behind the nominal wage (not adjusted for inflation) under the Marcos Jr. administration. In 2023, when the nominal minimum wage was ₱570, the real wage was only ₱483, and this gap continues to widen.³

Moreover, many Filipinos did not benefit from the tax exemptions, with 13.1 million informal workers and 11.9 million minimum wage earners,⁴ who will bear the brunt of rising commodity prices. Adding to the hardship is the increase in the suggested retail price (SRP) of 77 essential goods, including canned goods such as sardines, corned beef, and meatloaf; milk; coffee; salt; soap; laundry detergent and fabric conditioner; batteries; bread; and even bottled water.^5,6

Basic commodity	Previous SRP	Without VAT (12%)	Updated SRP as of February 6, 2025	Price Increase (% of SRP)
Sardines (155-g)	₱24	₱21	₱26.8	5-15%
Milk (400-g powdered)	₱292	₱257	₱299.5	6-10%
Instant coffee (2 g x 36 sticks)	₱61	₱54	₱70.45	6-11%
Instant noodles (55 g x 6)	₱49-52	₱43-46	₱53.05	1-7%
Pinoy pandesal (250 g)	₱23.75-25	₱21-22	₱27.25	9-14%
Pinoy tasty (450 g)	₱40	₱35	₱44	10%

Table 1. Price increase of some basic commodities

Beyond the data presented in Table 1, the value-added tax (VAT) and excise tax continue to exacerbate the already high prices of commodities. Under the TRAIN law, the current per-liter rates for petroleum products are: ₱10 for gasoline, ₱6 for diesel, ₱5 for kerosene, and ₱3 for LPG.⁷ Additionally, there have also been successive fare increases: a five-peso fare hike in the base fare for the LRT1 starting April 2⁸, and several provincial bus⁹ and jeepney¹⁰ operators and drivers are both seeking 2-Peso fare hikes as well. 

Privatization of Public Spaces and Basic Social Services

The underlying cause of the persisting decline of the standard of living in the country is attributable to interconnected neoliberal attacks on the basic masses: inadequate wages, high prices of consumer goods, and the privatization of basic public utilities and services. 

Oil Deregulation Law and the Continued Privatization of Philippine Transport System

Workers in the small-capacity transport sector and commuters alike continue to suffer from oil price hike (OPH), which is driven by the illusion of heightened oil supply “demand” fabricated by big oil cartels due to Republic Act 8479 of 1998, the Oil Deregulation Law (ODL). This “free market” illusion in oil and petroleum products has also eliminated the Department of Energy’s role in intervening in the price regulation. Furthermore, excessive taxes imposed on petroleum products, specifically excise and value-added taxes, directly contribute to the increased prices of consumer goods. The freedom of major oil companies to dictate high fuel prices should have been a cause for concern for every administration in the last two decades. Band-aid solutions such as fare hikes won’t work, thus, repealing the ODL should be done to resolve the unprecedented economic crisis that is burdening small-capacity transport workers and consumers. 

Moreover, recent reports indicate that the claims made by the Land Transportation Franchising and Regulatory Board (LTFRB) and the Department of Transportation (DoTr) regarding 80% PUV franchise consolidation under the Public Transport Modernization Program (PTMP), formerly the Public Utility Vehicle Modernization Program (PUVMP), are false. The revelation shows that 58%, or 111,000, are finding themselves unable to comply with the process, and of that number 33,000 are in Metro Manila alone.¹¹To recall, each modernized jeepney unit costs 2.5 to 2.8 million Pesos¹², and this excludes the expenses involved in joining and establishing a cooperative or corporation, as well as the ongoing monthly membership fees (“butaw”). Consequently, this exposes the fraudulent modernization program as ineffective, failing to provide a truly progressive, nationalistic, and people-centric solution to the country’s transportation crisis, as it is the drivers and small operators who bear the brunt, along with the commuting public.

Electricity, water, and internet connection

Consumers also bear the burden of high charges for water, electricity, and internet connections. On March 11, 2025, Meralco imposed a 26-centavo increase in electricity rates. This translates to a rate of ₱12.2901 per kilowatt-hour (kWh), up from the previous month’s ₱12.0262. Therefore, for a household consuming an average of 53 kWh per month, this results in an additional charge of approximately ₱53.¹³ Electricity rates are anticipated to rise with the approaching summer due to increased consumer demand. 

Table 2, on the other hand, summarizes the increase in Manila water rates on the first quarter of 2025 ranging from P2.87 to P111.83 for households consuming from 10 to 30 cubic meters of water per month.¹⁴ Furthermore, several advocacy groups representing consumers and Indigenous Peoples among many others nationwide express their firm opposition to megadam infrastructure projects, due to their contribution to the neoliberal agenda through privatization of water supply and the subsequent destruction of ancestral lands and the environment.

Consumption	Oct to Dec 2024	Jan to Mar 2025	Increase
Low-income Lifeline – 10 cubic meters or less	₱88.53	₱91.40	₱2.87
Regular residents – 10 cubic meters or less	₱230.15	₱254.83	₱24.68
20 cubic meters	₱508.67	₱563.46	₱54.79
30 cubic meters	₱1,036.90	₱1,148.73	₱111.83

Table 2. Increase in Manila Water rates

It is also crucial to emphasize the limited access of urban poor communities to these utilities, particularly in areas where subdivisions and commercial establishments are being built, which are often equipped with private water and electricity lines. In Sitio San Roque in Barangay Pag-asa, QC, for instance, residents were only allowed to draw water during specific hours during the pandemic. Electricity connections in urban poor communities also vary: not all have direct connections (e.g., submetering), resulting in either higher electricity bills or overloading of existing connections. 

Internet connection is another significant challenge for urban poor communities, a reality starkly exposed during the pandemic due to the transition to online or synchronous classes for students. Mothers relying on mobile data face expenses of P100 for a 7-day connection with daily data caps, while those with Wi-Fi modems pay an average of P1,000-1,500 monthly for often slow internet speeds. Notably, the Philippines ranks 86th¹⁵ globally out of 220 countries in terms of internet connection speed. However, the nation also exhibits some of the highest internet installation fees globally,¹⁶ and the most expensive internet charges within Asia¹⁷. Additionally, free Wi-Fi is not universally available in public spaces, and signal coverage remains inconsistent across the country.

Privatization of Public Markets

The impact of rising commodity prices is substantial, affecting not only consumers, but also vendors and small store owners. Their burdens are amplified by the insecurity of their vending locations, which includes the risk of apprehension (e.g., by Metro Manila Development Authority (MMDA) officers, or through clearing operations of the local government unit (LGU)) or the confiscation of their goods, particularly for ambulant vendors, as well as the effects of the privatization of their vending spaces.

Table 3 details a number of public markets where PPPs have been introduced, posing a threat to vendors’ livelihoods and, upon completion, leading to escalated stall rental costs and the accrual of other charges or fees.

Public Market	Private proponent	Project status	Project details
Mandaluyong Public Market (Marketplace)	Macro Funders and Developers, Inc. (MFD)	Completed in 1991	• Estimated cost: P100 million40-year lease agreement • Public market became an idle land due to a fire in 1990 rehabilitated • Floor plan: Seven-story commercial enter
Bocaue Public Market, Bulacan	Meditech Trade and Development	Completed in 1999; terminated due to the refusal of vendors to transfer to the area	• Estimated cost: P60 million • Floor plan: Public market and commercial center in a 10,400-sq. m. area • Floor plan: Market with 500-600 stalls, Four-storey shopping center
Iloilo Central Market, Iloilo City	SMPHI	Re-opened on December 2024	• 25-year lease agreement between the LGU and SMPHI • Floor plan: Increased stall space: 285 to 300 more vendors accommodated, Increased parking capacity to 390 vehicles, From 800 to 1,250 more stalls, No increase in stall rentals proposed
Iloilo Terminal Market, Iloilo City
DiliMall, UP Diliman, Quezon City	CBMS Retail Business Development Consultancy	Approved as of February 2023; ongoing construction	• Floor plan: Shopping mall with private establishments, Spaces for a pet store, gym, and appliance store, Parking lot, Stakeholders are to pay P15,000 to P25,000 per month
Baguio Public Market, Baguio City	SM Prime Holdings, Inc. (SMPHI)	Approved in principle as of February 24, 2025	• 3.9 ha in size in the central business district • Floor plan: Eight-level parking area, Three-level retail area, Four-level market area, with a temporary relocation site for the vendors affected
Carbon Market, Cebu	Cebu2World Development Inc.	Ongoing construction	• Estimated cost: P5.5 billion • Transformation of the public market into a “commercial, heritage and cultural district with a multimodal and integrated transport hub” • The developer is charging as much as P40,000 per stall monthly
Carmen Public Market, Cagayan de Oro City	UKC Builders Inc.	Terminated	• Estimated cost: P120 million  • Floor plan: Turn the 0.8-ha land into a two-story building with a parking lot and open facilities
Cogon Public Market, Cagayan de Oro City		Terminated	• Estimated cost: P200 million • Floor plan: Turn the 1.2-ha land into a three-story building with a parking lot and open facilities
Tarlac City Public Market	Ithiel Corporation	Terminated	• Estimated cost: P190 million  • Floor plan: Phase I: Construction of the Market Complex on Lot A with an area of 8,533 sq.m., Phase II: Construction of the Market Complex on Lot B with an area of 4,981 sq.m

Table 3. Privatization of public markets in the country^{18,19,20,21,22,23,24,25}

The 1997 Executive Order No. 452 outlines guidelines designed to safeguard vendors’ livelihoods by promoting their empowerment, preventing unjust demolitions and evictions from their workplaces, and establishing designated vending sites, including for street vendors.²⁶ It is recalled, however, that in 2023, a fire at the Baguio City Public Market destroyed 1,700 stalls, resulting in an estimated ₱24 million worth of losses and damages. Vendors have received only P10,000 worth of financial aid from the Department of Social Welfare and Development (DSWD) Cordillera).²⁷ Similarly, a fire occurred in the former land area of the current DiliMall: at the UP Shopping Center. This disturbing pattern is also observed in areas where urban poor communities reside: fires break out amidst ongoing development aggression. Subsequently, residents are denied opportunities to rebuild their homes and livelihoods due to pre-existing land use conversion negotiations.  Street vendors are also further oppressed by the apprehension, confiscation of goods, and extortion from enforcers abusing their power.

In line with this, not all newly renovated commercial establishments and rehabilitated public markets benefit the vendors. In the case of the Bocaue Public Market, vendors refused to return to the renovated market due to exorbitant stall rental fees, inadequate stall space, poor ventilation, and suspicions of structural unsoundness of the building. Hence, and according to the same World Bank report²⁸, community-centered planning should be the foundation of public market rehabilitation projects, or any other development plans for that matter. 

Stakeholder engagement in the design process is crucial, as they possess invaluable insights into how best to serve their buyers. They understand the appropriate stall dimensions needed for their business and, most importantly, should be consulted regarding their capacity to afford rental fees. Rental fees, after all, dictate the profit margins as small store-owners and vendors need a living wage as well, and, equally as important, their selling price impact consumers. Beyond public markets, vending spaces also provide consumers with solutions to the challenges posed by poor urban planning in highly commercialized and populated areas, such as Metro Manila. They serve as a quick source of sustenance during long commutes and extended queues, while also offering affordable lunch options for workers and employees in their respective vending locations (e.g., construction sites, business process outsourcing (BPO) offices). It can be argued that they are essential to the life of cities, with informal workers like them contributing significantly to urban development.

What are the demands of consumers?

Remove VAT and Excise Taxes. To ease the burden of consumers from paying exorbitant prices on basic necessities and prime commodities, the government must remove VAT and excise taxes and increase the taxes of conglomerates and big corporations.

Junk the Oil Deregulation Law. The government must take back its control over the oil and petroleum industry and help Filipino consumers by managing prices of petroleum. It is also important for the government to provide support to small capacity transport workers by junking its profit-oriented modernization program.

Increase the Wages of Workers. Increased wages will help workers strengthen their purchasing power and eventually help the economy. The government must ensure that wages are enough for Filipino families to live and not just survive.

Make Basic Services Work for the People. Services must never operate in a profit-oriented approach. The government must turn away from schemes of privatizing basic services and use its political will to ensure that it remains accessible and affordable to the people.

As we advocate for a more inclusive society, it is important to always ensure that the people are prioritized. If goods and services are unaffordable to the people, then it furthers the disenfranchisement and the vulnerability of the people. The government must do whatever it can to ensure that people are able to live and not just survive.

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