Thaiwonderland : “we subsidize gasoline, so you have to lower your prices now”

One step further into the Zimbabwification of the country.

As you may know the government has decided to cut taxes on diesel and other fuels. For 6 months (read here).

So now the lunatics at the Commerce Ministry take for granted that businesses will lower their own prices ! And even more, they threaten to take legal actions if the companies do not comply !

Welcome to the rabbit hole of Wonderland.

Siripol Yodmuangcharoen, the commerce permanent secretary, said up to 1,000 items, including cement and other construction materials, should see price reductions thanks to lower logistics expenses.

The ministry’s Internal Trade Department has been ordered to ”closely monitor” the price structures of products expected to benefit from the excise tax cut, both in Bangkok and in upcountry provinces. The department expects to take two weeks to complete a preliminary survey of product prices and production costs following the fuel tax cuts.

Mr Siripol said the ministry could take legal action against manufacturers who refuse to cut product prices to reflect their actual costs after the excise tax cut on fuel was implemented. (Bangkok Post)

Margins, costs… I think those people do not have the slightest idea of the beginning of a clue of how the economy works and how businesses are managed.

It’s scary.

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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