Commerce Minister Addresses Price Stabilisation Account Concerns

In a recent interview on the program “Au cœur de l’info,” which aired on November 28, 2024, Commerce Minister Michael Sik Yuen acknowledged significant issues within the Price Stabilisation Account, assuring the public that the government’s commitment to lowering fuel prices would be fulfilled.

Sik Yuen addressed the pressing question on the minds of many consumers: when will fuel prices decrease?

He explained that the government has already initiated work on this matter.

“During the electoral campaign, the Alliance du Changement made promises, including a reduction in fuel prices. While we intend to lower these prices, we face a considerable shortfall in the Price Stabilisation Account,” he stated.

Sik Yuen noted that he has been actively consulting with various associations and holding discussions with the Ministry of Finance since last Friday, November 22, to explore potential solutions to address this deficit.

Different scenarios are being considered, including adjustments to the excise duty and other contributions.

However, he tempered expectations by stating that it’s still too early to announce the specific amount of any price reductions.

“We are still working on potential proposals. But rest assured, there will be a reduction. There’s no need to worry,” he stressed.

He elaborated that the government is awaiting calculations from the Minister of Finance regarding how much can realistically be allocated for this purpose.

“We have prepared several scenarios. The Ministry of Finance needs to determine what it can afford, and I expect we will receive feedback either this Friday or next week,” he added.

Sik Yuen assured consumers that the commitment to lower fuel prices would be honored promptly.

“We take this matter very seriously. We will act as quickly as possible,” he said, while also encouraging gas stations to continue their regular operations and maintain their usual stock levels.

In addition to fuel prices, the minister is also focusing on reducing the costs of essential goods.

He recently held a meeting to work on this issue, stating, “We are moving very quickly. We already have a preliminary list of items we are targeting.”

This list is including baby products, canned vegetables, frozen goods, coffee, and pasta.

Looking ahead, Sik Yuen mentioned a forthcoming meeting with the Ministry of Finance scheduled for next Wednesday, December 4, to assess the financial implications of these measures.

“We are progressing rapidly, but once again, the Ministry of Finance needs to evaluate the potential revenue loss and the costs involved. Nevertheless, I can say that we are on the right track,” he expressed.

The minister proposed potential strategies, including a reduction or complete elimination of the 15% tax, as well as the possibility of introducing a “mark-up” system to assist in lowering prices.

He expressed confidence that the initial reductions in basic goods prices could be implemented by December.

However, he cautioned that there are challenges, such as the depreciation of the rupee and structural issues at the port.

“It’s crucial to address these issues; otherwise, we will end up back where we started,” he warned.

Additionally, Michael Sik Yuen is aiming to dismantle monopolies, particularly in the pharmaceutical sector, to foster competition and lower prices.

“I support breaking monopolies. We need to explore how we can do this legally,” he remarked.

Finally, he indicated his intention to address intellectual property rights, an essential aspect for safeguarding the rights of owners while promoting a competitive economic environment.

Source: Defi Media