Apia, SAMOA — Samoa’s Ministry of Commerce, Industry and Labour (MCIL) has intensified the enforcement of the Price Control Order issued in September last year. The ministry has urged customers to report any instances where the prices of purchased goods exceed the maximum prices set by the order. The Price Control Order, part of the Competition and Consumer Act 2016, imposes fines and penalties for non-compliance and is in effect indefinitely.

ADDRESSING PRICE HIKES

In response to concerns about rising costs of essential food items that commenced during the holiday season, the ministry called for consumer vigilance. An instance of this was a reported price increase for chicken legs in Vaitele, where prices reached $10 per kilogram, exceeding the $8 per kg limit set by the order. The price increase was attributed to a shortage. The ministry’s inspectors are continuing to monitor businesses for compliance with the order.

UNDERSTANDING THE PRICE CONTROL ORDER

The price control directive includes both wholesale and retail pricing for various food items. It accounts for markups and Value Added Goods and Services Tax (V.A.G.S.T.).

For instance, in Upolu, the wholesale markup for dry goods is 12.5%, with a retail markup of 20%. For freezer goods, these figures are 15% and 22.5%, respectively. In Savai’i, the markups are 18.5% and 22.5% for dry goods, and 21% and 25% for freezer goods, respectively.

The order stipulates that a box of chicken legs (15 kg) should cost SAT$99.30 wholesale in Upolu and SAT$104.50 in Savai’i, with retail prices at SAT$8 per kg and SAT$8.60 per kg, respectively.

However, some wholesalers reported prices between $73 and $77 for the same item. Prices for other goods such as sugar, flour, rice, and milk products have also been affected by the order, seeing an increase in their costs.