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Dumisani Nsingo, Senior Business Reporter
THE Oil Expressers Association of Zimbabwe (OEAZ) has called on retailers to exercise restraint when pricing its products as it moves to protect consumers from unscrupulous businesses bent on wantonly increasing prices of commodities.
OEAZ chairperson Mr Busisa Moyo said the association was not going to dispatch price monitors to ascertain the pricing model being employed by retailers as is the case with the Grain Millers Association of Zimbabwe (GMAZ), which had to send out teams two weeks ago to ensure that consumers did not fall prey to unscrupulous shops that had unilaterally increased prices of goods over the past few months. He said there was a need for retailers to put in place realistic mark ups.
“We encourage our retail networks to exercise restraint in adding mark ups and issue recommended selling prices with price lists. We have not gone an extra mile to ensure enforcement at this stage,” said Mr Moyo.
(OEAZ) has a sole mandate of controlling and ensuring the production of cooking oil. It incorporates all oilseed crushers, expressers, refiners and soap making companies.
“Our sector is very competitive due to the presence of multinationals like Wilmar Oils International and Willowton and the entrance of Mount Meru. We believe strengthening sustainable competitive market dynamics is the ultimate self-regulating mechanism,” said Mr Moyo.
Confederation of Zimbabwe Retailers president Mr Denford Mutashu said the latest wave in price increase of goods was as a result of an increase in most products by manufacturers.
“Most of the manufacturers have been increasing prices almost on a weekly basis, some if not two times a week. Sometimes the challenge is that you (consumers) can only notice a price increase at a retail shop. You cannot notice a price increase at the supplier’s door, so a lot of them have increased prices recently and even this week we have a lot of price increases,” he said.
Mr Mutashu also took a swipe at sugar industry players for allegedly causing an artificial shortage of the commodity on the market in a deliberate ploy to push for an increase.
“We have a lot of price increases just like the situation on sugar. What the players did was to withhold supply until they got a nod on the price increase from the Government, that’s when they started sending out trucks . . . ,” he said.
Mr Mutashu further stated that a number of suppliers and wholesalers were demanding payment in foreign currency.
“A lot of them (suppliers) have been refusing to accept RTGS. They have been demanding payment in United States dollars, so what happens is that someone (retailer) has to change it (price of product) into RTGS at a cost or certain price because the customers are not buying in US dollar so that’s when you have an exchange that causes that distortion but most of the suppliers have been increasing prices,” he said.
Industry and Commerce Minister Nqobizitha Mangaliso Ndlovu said most of the price increases were not justified and were hurting consumers who are already feeling the brunt of low disposable income.
“We can discuss all we want but the honest truth is that people just can’t afford these prices. I don’t know the essence behind these price increases and the motive behind this. We just wish to discourage businesses from this tendency,” he said.
Minister Ndlovu said by continuously increasing prices in that way business was shooting itself in the foot.
“GMAZ came up with the initiative because there is no business and they realised that the way retailers were not co-operating with Government it was hurting their business the most,” he said.
Minister Ndlovu said the Government would continue to explore various ways of cushioning consumers.
Online Reporter