The government has threatened to take legal action against producers who refuse to cut the prices of products despite the continuing fall in oil prices.
"We believe most manufacturers are preparing to cut prices in light of the falling oil prices," said Boonyarit Kalayanamit, director-general of the Internal Trade Department.
"If they are still reluctant to cut prices to reflect lower production costs despite a substantial drop in oil prices, it is legitimate for the department to analyse the actual cost and take legal measures to deal with the issue."
Penalties include not more than seven years' imprisonment and a fine of not more than 140,000 baht or both.
Mr Boonyarit said the department was speeding up analysing and finalising the overall price structure of products that have benefited from falling oil prices.
The department is also keeping a close watch to see if fuel tariffs are cut in line with the continuing fall of oil prices.
"If the fuel tariff charges are cut, product price cuts are inevitable," he said.
Commerce Minister Chatchai Sarikulya said on Wednesday that 43 consumer items particularly on the ministry's price control list, could be subject to price cuts in light of falling oil prices, with decisions expected by the end of this month. But the price cut for each item would vary based on raw material costs, oil prices and wages.
The price control list covers mainly essential items for consumers' daily use including food, consumer products, farm-related products such as fertiliser, pesticide, animal feed, tractors and rice harvesters, as well as construction materials, paper, petroleum and medicine.
Foods include garlic, paddy rice, milled rice, corn, eggs, cassava and cassava products, wheat flour, yoghurt, powdered and fresh milk, sugar, pork and vegetable and animal oils, while consumer products include detergents, sanitary napkins and toilet paper.
Businesses making or selling products on the list are required to inform authorities of their production costs and seek approval before any price increase.
Mr Boonyarit said authorities had already discussed potential price cuts with the private sector to ensure they knew prices would be kept in line with falling global and domestic oil prices, and their responses had been positive.
"However, the extent of the cut for each product will be subject to mutual consideration and agreement between the private and public sector," he said.
"We expect decisions on price cuts will be available by the end of this month or early next month."