Govt to tame Byo price hikes
FINANCE and Economic Development Minister Professor Mthuli Ncube has said his ministry is going to engage businesses in Bulawayo to find out why prices have remained inflexible in the wake of measures put in place by the Government to tame inflation and speculative market behaviour.
He said in many parts of the country, businesses have responded by lowering prices of basic commodities on the back of a decrease in fuel prices after the Government put in place a raft of measures meant to restore confidence and ensure value for money. He said while fuel price discrepancies caused by distances were partly to blame for price differences, they were far from justifying the prices obtaining in Bulawayo.
“As a Ministry, we will continue to engage businesses to find a lasting solution and we hope that this will be sooner than later. Our economy is beginning to stabilise and this must be felt by the people as well,” Prof Ncube said.
He
He said prices of basic goods like cooking oil and sugar have responded quite well to the Government initiatives and gone down. While he acknowledged other costs related to transport, he said there should be a range of about plus or minus 20 percent difference with other areas. But when those prices double or quadruple then there is an element of profiteering, he said.
“Bulawayo for one has a unique challenge that they may be manufacturing from outside the city so transport costs are factored in but on the other side fuel prices have been going down consistently for the past month which should not have a great impact on pricing. As a sector we need to ensure we remain compliant to expectations of consumers,” said Mr Mutashu.
However, Mr Mutashu said the contentious issue around parking fees in the Central Business District was also causing problems in pricing systems.
“Bulawayo again has other challenges that have been raised of late including the parking fees and shop licence fees by council that consumers have been crying about. So, we urge the regulatory bodies to also consider responding to Government efforts of stabilizing the economy and they charge accordingly so that consumers are also cushioned,” he said.
He said the prices in most formal shops in Bulawayo have seen consumers opting to buy from the informal shops that were fairly cheaper although most of them were selling in USD and rand.– @NyembeziMu