Commission begins nationwide price inspection exercise

THE Independent Consumer and Competition Commission (ICCC) has started a nationwide price inspection exercise to ensure that businesses do not increase the prices of certain goods and services by more than 10 per cent.
ICCC chief executive officer Paulus Ain said business houses were scaling down supply due to the high import costs caused by global inflationary pressures.
But he said certain goods and services must not exceed 10 per cent mark-up.
This exercise follows an imposition of a 10 per cent price decrease in rice, flour, sugar, baby formula, soap (bar and liquid), cooking oil, tinned fish, tinned meat, fresh chicken products and frozen meat products.
The services affected relate to medical/health.
“The new price measure is to prevent price increases and stop sellers who take advantage of high inflationary rate to increase prices,” Ain said.
“The initial phase is to check and collect shelf prices in shops and get shop owners’ reaction on the cause of the increase for ICCC’s reports.
“Port Moresby, Central and Gulf were covered last week.
“Teams are in Manus, Northern and Milne Bay, and the remaining provinces will be covered after the Independence celebrations.”
Ain said the exercise was to inform business houses on how inflationary effects were managed and that they should not take advantage of consumers by increasing prices.
“The next phase of the exercise will be in January – applying penalties on non-compliant business houses,” he said.
“From previous exercises, we are seeing an increase in prices following recovery cost as more is spent on import and in order to recover the cost businesses increase their shelf prices.
“If we force a decrease in prices, business houses will not survive and if we allow an increase , consumers will be affected, so we are trying to balance the act, so businesses survive while consumers are not over charged,” he said.