The Commerce Ministry is being ordered to take more effective measures to combat unreasonable consumer product price hikes, while continuing to boost the grassroots economy.
Deputy Prime Minister Somkid Jatusripitak said he had instructed the ministry to closely monitor the prices of consumer products during the current period of high oil prices, which it is feared is being exploited by certain businesses as an excuse to raise their own prices.
The ministry will have to work together with all provincial commerce offices to curb expected price hikes, he said.
"Because oil prices continue to rise, the Department of Internal Trade [DIT] will have to implement an operation plan to deal with expected increases in product prices," he said. The ministry will next call a meeting with the provincial commerce offices over the matter, he said.
These provincial commerce offices are expected to also assume a crucial role in implementing the government's policy on stimulating the economy at the grassroots level and boosting tourism, he said. Commerce Minister Sontirat Sontijirawong said he had instructed the DIT to speed up an analysis of the actual impact of rising oil prices on the price of consumer products.
He emphasised that provincial commerce offices play an important role in implementing the ministry's policies, especially on the grassroots economy stimulus, household income generation, cutting household expenditure, controlling consumer product prices effectively, consumer protection, and handling the problem of low agricultural product prices.
DIT director-general Whichai Phochanakij, meanwhile, insisted the department found in its latest analysis of recent rises in diesel prices that oil price increases had only had a slight impact on consumer product prices. If diesel prices go up, but do not exceed 30 baht/litre, the cost of consumer products will increase by 0.0002-0.0085%, he said.
The least impacted type of product was plastic bags, while cement was the most affected, he said. Product inspection teams will be deployed to randomly monitor retail prices to ensure consumers are not forced to pay unreasonable amounts of money, he added. Those found guilty of unlawfully raising product prices will face at most seven years' imprisonment or a maximum fine of 140,000 baht, or both, he said.
On Tuesday, oil faltered below US$70 (2,000 baht) a barrel as Saudi Arabia said it has no intention of using its oil wealth as a political tool, and as American crude stockpiles were seen making gains for a fifth consecutive week.
Saudi Arabian Energy Minister Khalid Al-Falih told Russia's TASS news agency that the kingdom is ready to boost output to 11 million barrels per day soon and has no intention of repeating the 1973 oil embargo amid the controversy over the killing of journalist Jamal Khashoggi.
Crude has hovered near $69 a barrel for the past four days after reaching a four-year high earlier this month. Saudi Arabia's evolving explanation of how the critic of the kingdom died has drawn scepticism among politicians around the world and kept investors on edge. Still, US President Donald Trump, who is set to impose sanctions on Iran's exports next month, is counting on Saudi cooperation to make up for the loss of supply and soften potential price increases.
Earlier this month, the Commerce Ministry reported consumer prices rose 1.33% from September last year after rising 1.62% year-to-year in August, the highest since October 2014, driven by the rising prices of energy and fresh food.
Pimchanok Vonkorpon, director-general of the Trade Policy and Strategy Office, said that fresh food prices, particularly of vegetables and fruit, dropped significantly last month, bringing down overall consumer prices. She said lower prices were a result of excess supply and are expected to only be temporary.
Of the 422 product and service items used to gauge inflation, the prices of 221 items such as milled rice and cigarettes rose last month.
No price changes were registered for 84 items, while 117, including pork and toothpaste, saw prices drop.
Ms Pimchanok said Thai inflation is expected to accelerate in the fourth quarter, driven by oil prices and a weakening baht.