The industry shall, therefore, incorporate this fuel price reduction into its pricing structures, which will result in the pricing of some basic commodities falling by ranges of 1% to 5%. The overall consumer price index is therefore inclined to fall further from the 1.2% increment experienced over the 2016-17 period. Out of the 15 monitored basic commodities, prices of economy beef for example are expected to fall by an average of 10 to 20%.
In addition, the private sector community has agreed to adopt global best practice by publishing the Recommended Wholesale and Retail Prices on either the product packages or in the media. In particular, the cooking oil industry shall be working with its distribution partners to ensure that the wholesale and retail mark-ups are guided by the Manufacturers’ Recommended Prices (MRP).
The Industry acknowledges the commitment made by Government to improve the national macro-economic conditions and ensuring an improvement in the supply of scarce foreign currency resources required to stimulate domestic production and stabilise of prices of basic commodities.
In turn, the industry commits itself to continue engaging with Government through the National Competitiveness Commission in order to address the major cost drivers affecting the domestic economy. We welcome renewed efforts towards improving business confidence and competitiveness in the domestic agricultural and manufacturing sectors by reducing current regulatory cost of compliance by at least 50%.
It is paramount that, as a nation, we continue to work towards improving domestic production and productivity for the benefit of all stakeholders and, as industry, we in the private sector business community re-affirms our commitment to playing our part.