Price Control Plea To Be Extended

Price control plea to be extended

BANGKOK: -- The Ministry of Commerce is to ask retailers and manufacturers to continue maintaining goods at current prices after the expiry of the current price rise ban on 30 June, Commerce Minister Thanong Bidaya announced today.

The original ban, touted as ‘cooperation’ on the part of retailers and manufacturers, was enforced after soaring fuel prices saw retailers warn that higher production and transportation costs could force them to put up the price of their products.

Today Mr. Thanong said that close monitoring by the Department of Internal Trade had ensured that the cooperation was successful.

“I am satisfied with the price control measures”, he said.

“There have been no reports of goods where the prices have risen and which have caused hardship to consumers as a result”, he added.

Once the current price control measures expire on 30 June, the Ministry of Commerce will meet to determine which goods have been genuinely affected by higher production costs, and it is possible that the ministry will give retailers the green light to raise the price of certain items.

But Mr. Thanong said that for most goods, the ministry would ask retailers and manufacturers to retain the current price controls.

Billing the price controls as good news for retailers, he warned that immediate price rises would simply lead to lower consumer spending, which would adversely affect business.

But he admitted to being concerned about the lack of certainty over oil price trends, and noted the need for the government to ensure that inflation did not rise above 3.8 percent for the year as a whole.

The first five months of the year have seen inflation stand at an average of 3.1 percent, considerably lower than the 5-6 percent recorded by other countries in the region.

--TNa 2005-06-15