Some retail prices could drop

Commerce permanent secretary Siripol Yodmuang-charoen yesterday said certain products should be cheaper due to the tax measure. On July 25, diesel excise will be waived, paving the way for pump prices to be cut by Bt2.80 per litre. Meanwhile, crude oil for August delivery is now US$130.96 (Bt4,377) a barrel, well down from its $147.27 peak.

"Manufacturers will see lower transportation costs and they must cut product prices to ensure fairness to consumers," Siripol said.

Top of the list are construction materials such as cement, steel and sand, and commodity goods such as rice.

The ministry will take legal action against any producers who refuse to follow the order despite the lower production costs by putting products in priority groups for retail price control, he said.

Siripol did not rule out a price hike for some products, as the ministry must consider matters on a case-by-case basis. Despite lower transportation costs, raw materials have become more expensive, he added.

The Internal Trade Department is conducting a study on products that will benefit from lower oil prices. Condensed milk and drinking water will enjoy a 0.54-per-cent cut in production cost, for instance. Student uniforms and shoes will drop 0.44 per cent, toothpaste and soap 0.2 per cent, and cement 0.02 per cent.