[PHNOM PENH POST]
AN outcry over soaring fuel costs has brought renewed attention to a
decade-old Ministry of Commerce prakas that requires price changes to be
announced one day in advance.
The ministry has re-circulated the prakas, which officials say ought to keep petrol prices more stable.
“The
measurement is to force those companies to comply with the existing
edict to prevent price fluctuation and ensure the inventory,” said So
Darith, deputy director of the Commerce Ministry’s Trade Promotion
Department.
“Normally, whenever they want to increase or
decrease the price, they have to inform the ministry,” he said, adding
companies had reaped unfair benefits by not complying with the law.
The
prakas forces oil and gas import-export companies to both inform the
ministry one day prior to any price change and to regularly report their
inventories, he said. Despite being passed in 2000, companies have
generally not complied with the regulation.
About 1,500 people in
Phnom Penh protested the rising cost of petroleum in the city late last
month. Petroleum prices yesterday were about 9 percent higher than in
January 2011, according to Commerce Ministry daily statistics.
The
Ministry of Economy and Finance predicts overall price inflation will
hit 5.5 percent this year, while the International Monetary Fund
predicts average inflation of 6.5 percent this year. Experts say the
increase in fuel prices is playing a large role in Cambodia’s inflation.
Companies
are now required to inform the ministry’s Trade Promotion Department of
any price change in writing, as well as post prices on gas station
billboards in Cambodian riel. The postings must be visible from 200
metres away, the prakas said. Also, firms must report in writing to the
department their inventories each month, according to officials. The
ministry will require import-export companies to hold in supply an
amount equal to that they sell each month.
May Mailia, Phnom Penh-based marketing manager of energy company PTT, confirmed that he had received the directive last week.
“We
welcome any recommendation and directive from the government to
maintain social and public safety. It will not affect our business in
any way,” he said.
In response to the ministry’s inventory
rules, he said companies typically keep the same amount of fuel they
sell each month in reserve to allow for supply security.
Cambodian
Economic Association President Chan Sophal expressed disappointment
with the measure, saying that while it may benefit consumers, it also
hurts those import-export companies.
“It’s good for consumers
because it does not allow the companies to capitalise on rising global
prices. But that prevents sellers from having full flexibility when
setting their prices,” he said.
“The price should be dependent
on free competition among industrial players. That competition should
help to lower prices, not government intervention,” he added.
Cambodia
imported 756,139 tonnes of petroleum worth US$692 million in the first
half of the year, compared with 440,607 tonnes worth $296 million in the
same period 2010, ministry statistics show.
No comments:
Post a Comment