Thailand is preparing to meddle even more heavily in the open market, regulating and capping prices on a wider range of products in its losing battle against rising oil prices and inflation.
Commerce Minister Jurin Laksanawisit said a "war room" advises him daily about product prices. While, so far, manufacturers have cooperated with government requests to keep prices unchanged despite increased costs, that may not last.
The ministry noted that various transportation services are looking to raise rates by up to 20% in response to higher fuel costs, even though the government is going broke artificially holding diesel prices at 30 baht a liter.
In response, the Department of Internal Trade is breaking down the manufacturing cost structure of consumer products across the board and deciding what a product should cost, rather than let the producer decide.
Jurin justified what ultimately will prove to be a futile attempt to manipulate free-market economics by setting a product prices after the government can no longer afford to cap diesel prices and use its own thinking for how much of a product's price is determined by fuel and transport costs.
Jurin noted that products have different cost structures and so prices cannot be allowed to increase across the board. He added that joint deliberations over proposed price increases would be needed in advance.
According to the Ministry of Commerce, the Department of Internal Trade will be analyzing product cost structures more meticulously than before.
He said this may even lead to prices falling for certain items, in line with lowered costs. For the benefit of consumer benefit, product prices will be kept as low as possible but at levels which still allow producers to subsist.