Prices of six consumer products are likely to be cut by 5% on average from tomorrow in light of falling oil prices.
"On Friday, clarity on product price cuts as a result of the oil price dropping will become more available, and it's highly likely six items will have their prices cut," said Commerce Minister Chatchai Sarikulya.
The products that have benefited most from lower costs for transport and raw materials are the byproducts of oil. They include lube oil, plastic pellets, cement, roof tiles, steel rods, steel plate, structural steel and chemical fertiliser.
Gen Chatchai said the ministry would declare tomorrow new recommended prices for pork, eggs and cooking gas.
"The state-recommended prices are considered on a par with the actual production costs," said Boonyarit Kalayanamit, director-general of the Internal Trade Department. "After the announcement, authorities will closely inspect and monitor whether traders comply with the recommended prices."
The government has threatened to take legal action against producers or traders who refuse to cut prices despite the continuing fall in oil prices.
It is legitimate for the department to analyse the actual cost and take legal measures to deal with the issue, Mr Boonyarit said.
He said earlier that the department is also keeping a close watch to see if fuel tariffs are cut in line with falling oil prices. If tariffs are decreased, product price cuts are inevitable, he said.
Gen Chatchai said last week that 43 items could be subject to price cuts.
The price control list covers mainly essential items 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, wheat flour, yoghurt, powdered and fresh milk, sugar, pork and vegetable and animal oils, while consumer products include detergents, sanitary napkins and toilet paper.