Govt imposes price controls in response to complaints
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The Yingluck government has stepped up its battle against the rising cost of living in Bangkok and other major cities by imposing a price control on cooked meals.
Due to the 40-per-cent hike in the minimum wage to Bt300 per day and other cost factors, the prices of ready-to-eat meals have jumped, resulting in widespread public complaints.
In response, the Commerce Ministry last Thursday set up a high-powered committee to control the prices of cooked meals, which are now over Bt35-45 per meal, up from the previous Bt25-35.
Many food vendors have said the prices jumped because of higher rental fees at major shopping malls and retail outlets, as well as higher wages for workers and other factors following the hefty wage hike in April.
According to Commerce Minister Boonsong Teriya-pirom, the prices of 10 popular meals will be controlled by the government under the Internal Trade law.
These menu items include rice topped with omelette, rice with curries, rice with pork, and noodles, among others.
If vendors sell these items at a price higher than the suggested prices of the Commerce Ministry, they will face legal action for violating the law, and face fines and other penalties.
The permanent secretary for commerce will chair the price control committee.
At present, the Commerce Ministry lists 42 necessary consumer products as items whose retail prices are under government control.
In addition to ready-to-eat meals, the Commerce Ministry is considering controls on retail rental fees because rent is a cost factor for vendors of cooked meals.
Rental fees at major shopping malls, for example, have risen markedly in the past few months.
Overall, these kind of measures can be seen as a last-ditch effort by the government to tackle the pressing issue of the higher cost of living.
Several opinion polls show that the government has flunked in terms of economic management, as the majority of people nationwide have complained about higher prices of foods and other necessary daily items.
In the latest E-sarn poll, covering 20 northeastern provinces, which are the ruling Pheu Thai Party’s stronghold, the majority of respondents gave Prime Minister Yingluck Shinawatra the thumbs down on the economy, even though she remains popular on other issues.
Korn Chatikavanij, deputy leader of the opposition Democrat Party and former finance minister, said the government had mismanaged the economy, resulting in rising living costs.
Yet, state-owned oil and gas companies, namely PTT plc and Thai Oil have reaped huge profits in the first quarter of this year, leaving oil and gas prices too expensive for consumers.
In addition, the government has been reluctant to adjust upwards the prices of diesel, electricity, as well as taxi and public bus fares, among others. For example, it is losing a monthly Bt9 billion as a result of scrapping the Bt5-per-litre diesel excise tax.
In the meantime, the country’s energy regulatory body is seeking a Bt0.30-per-unit hike in electricity charges, but the government has asked for a one-month delay.
Taxi and public bus fare adjustments have also been put on hold for fear of further upsetting the public.
Overall, the benefits of the hefty hike in the minimum wage are now unclear as wage-earners face substantial rises in the prices of food and other products, as well as commuting costs.
