Consumer goods go for full price rise; taxi fares up

The Transport Ministry yesterday approved a 12-per-cent increase in taxi fares, effective this week. Commuters will need to pay Bt35 for the first kilometre, against the first 2km at present. The rate for subsequent kilometres will be raised by 50 satang per km. For example, the fare for 2-12km will be Bt5 per km, from Bt4.50 at present.

A consumer group plans to petition against the move, citing that most taxis are powered by cheap natural gas and their drivers therefore have no reason to raise fares.

As the Bank of Thailand highlights the possibility that inflation could hit 10 per cent this year, the six major consumer-goods makers, who control 90 per cent of the market, told the Internal Trade Department yesterday they could not maintain their prices.

After their prices hit the ceiling, the manufacturers may also have to ask for the department's approval for a further price hike to cover rising costs, said Prapot Nanthawatsiri, president of the Thai Soap, Detergent and Personnel Care Manufacturers' Association.

 "It is very difficult for us to freeze prices as requested. For now, all we can do is to increase prices within the ceiling, but soon we may have to ask for permission for a further price increase," said Prapot.

Despite stating that Saha Group, where he is a senior executive, would be the last to increase retail prices despite losses, he said detergents would be the first items whose prices will be raised - as more than 40 per cent of the products contain petroleum by-products as a raw material. Soap and shampoo prices would be the next to be increased, as 30-40 per cent of their raw materials are affected by the soaring price of oil.

Internal Trade Department deputy director-general Vatcharee Vimooktayon is hopeful the producers will not raise their prices sharply, in fear of a smaller market share at a time of lower purchasing power.

"The government should seek new measures to bring down the burden on consumers," Prapot said, suggesting that the government focus on food prices and fares.