Move to lower the prices of goods
The Commerce Ministry will this week call for a meeting with goods manufacturers to discuss whether they can lower goods prices following the cut in the price of diesel and subsequent drop in the cost of production.
A senior source from the ministry said that with the edging down of the price of diesel to the lowest level in more than six years, enterprises may be able to lower the price of some items, in particular heavy goods, due to lower transport costs.
The move aims to ensure fair practices for consumers, traders, and manufacturers.
However, the ministry admitted that it may not be easy to bring down goods prices immediately since enterprises had fixed costs, while the depreciation of the baht had resulted in price hikes, especially for products that rely on the import of raw materials.
The ministry found that lowering the price of diesel by 22 per cent from Bt29.99 per litre to Bt23.29 per litre would cause production costs to drop 0.1-1 per cent depending on the weight of goods.
The 1 per cent impact would on heavy goods such as concrete, cement, and steel.
The 0.1 per cent impact would be on lighter goods such as soap, noodle, MSG, and toothpaste.
In addition to efforts to lower the cost of living, the ministry will cooperate with modern traders, retailers, supermarkets, and convenience stores nationwide to organise cheap-price fairs on Commerce Day from August 19-25.
The event will offer discounts of 20-70 per cent for consumer goods and food at retail shops that join the initiative.
Duangkamol Jiambutr, spokesperson to the ministry, said the project served the government’s policy of reducing the cost of living amid the slowdown in economic growth.
To help local enterprises and traders, the ministry will allow One Tambon One Product producers and traders, and small and medium-sized enterprises to trade their products at the ministry, in Nonthaburi, from August 19-21.
