Proper price monitoring processes will be in place

As work starts on the reduction of prices of about 20 items in Fiji within days, it has been confirmed that proper monitoring processes will now be in place to ensure that importers, wholesalers and retailers do not overcharge the consumers.

Over the past months, concerns have been raised on the continuous increasing prices even after the effect of the devaluation was felt.

Fijivillage has been monitoring the prices of many items and it has confirmed by various people that a number of items go through three mark ups before the item sits on the shelves for the consumers.

We have assessed that the mark-ups amount to 7 percent at each point bring the total mark-up prices to about 21 percent for a particular item.

Attorney General Aiyaz Sayed-Khaiyum said they have established that sometimes the importer, wholesaler and retailer are the same company.

As the new pricing model for about 20 items comes into place this week, the Commerce Commission will monitor the prices and the mark-ups imposed on the items.

It has also been highlighted that prices for some items have continued to rise although it is on zero duty and exempt from VAT.

Items sold outside the main centres like Suva has also seen increased mark-ups apart from cartage costs.

Sayed-Khaiyum said it has been noticed that most supermarkets operate in a chain and all receive increased mark-up percentages.

He said despite Government=s announcement on the reduction of food prices in 2008, business houses continued to use the old pricing model.
 
Sayed-Khaiyum calls on businesses to follow the new pricing model which is currently being gazetted.