Consumer products likely to cost more despite cut in diesel price
The move by the Oil Fuel Fund Office to approve a reduction in the retail price of diesel by 50 satang per litre from Wednesday is unlikely to deter consumer goods makers from hiking prices.
President of the Thai Wholesale and Retail Trade Association, Somchai Pornratanacharoen, said manufacturers were forced to hike product prices as skyrocketing energy costs had affected their overall cost of production.
"The high energy prices last year pushed up the prices of items, such as noodles, soaps, and snacks," he said.
The prices of many products have risen this year, such as adult diapers, "Lactasoy" soy milk and "Leo" bottled beer, he said.
"Some stores in provinces around Thailand have increased the retail price by 5 baht per item," he added.
Snack manufacturers are itching to increase their prices, but they are waiting for potato chip companies to take the lead.
The popular “Carabao” energy drink has raised its price due to higher packaging costs.
“High inflation and increased energy prices are factors affecting production cost, while the economic slowdown has hit consumer spending,” said Nattha Piyawirojsathien, director of strategic planning at Mindshare, a global media and marketing services company.
Consumers are demanding that the government, the private sector, and manufacturers maintain their product prices, she said.
There is still a necessity to purchase food even though the prices have gone up, hence consumers are moving towards house brands and buying in bulk, according to Nattha.
She added that other countries are facing similar issues, but in Canada and the US, for instance, the original selling prices were maintained during the festive season.
“Consumers may not be able to buy the same quantities as before, but these factors don't stop them from spending, because the pandemic has already forced them on a budget, “said Nattha.
“Spending will now be smarter and more rewarding,” she added.
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