Price of Thai consumer goods might increase due to diesel price hike

The price of diesel in Thailand is set to increase next month, beyond the 30 baht per litre cap, but the Commerce Ministry has promised to do everything it can to keep consumer goods costs under control. The public is now worried about the products being more expensive due to the increase in diesel price. The diesel prices, connected to energy and oil price surges around the world, are also connected with global inflation worries.

The ministry has reviewed the costs, and even if diesel prices are forced to rise, they claim this won’t cause a domino effect and cause every product to be more expensive.

“It’s important to think about whether high pricing reflects manufacturing costs.”

“If costs are proven to be expensive, prices of goods might have to rise but if costs rise only a little, everything will be the same as it is now.”

However, last week, according to the Layer Farmer Association, the price of chicken eggs in different sizes increased by 10 satang to 3.50 baht per egg due to rising feeding expenses. And that’s just one small example.

“The Department of Internal Trade has analysed the costs of all types of goods. Rest assured that the ministry will monitor the prices of goods closely. If there is not too much impact on production costs, the firms will be asked to shoulder the extra costs and not pass them on to consumers for the time being. Most importantly, they must not take advantage of the situation and unreasonably increase prices.”

If the 30-baht-per-litre cap is removed, the price of diesel might rise to 35 to 36 baht per litre next month if global oil prices keep rising. This would then raise consumer-goods costs, and the government would have to come up with solutions to deal with the potential of rampant inflation.

SOURCE: Bangkok Post l Bangkok Post