Friday, November 26

Businessmen warn about price increases and shortage of products due to the increase in fuels

The increase in the price of fuels, of international freight and agricultural inputs could have a significant impact on the price of those products of the basic family basket that are not regulated, and generate shortages in those that do have a ceiling price, warned the president of the Chamber of Commerce, Industries and Agriculture (Cciap), José Ramón Icaza Clément.

According to the business leader, There is no doubt that the increase in the price of oil in international markets, which has generated a significant increase in the price of fuels in Panama, coupled with the increase in transportation costs (freight) and the increase in the cost of agricultural inputs (raw materials) will generate an inflationary trend in the country.

“Those products that have a high dependence on the cost of fuel, that is, that the cost of fuel has a high incidence in its cost structure will have a greater impact, and it will be necessary to see then, if there is a substitute product that has a lower impact that allows the Panamanian people to modify their consumption in a given time, “he said.

Icaza Clément explained that This upward trend could affect the prices of the products of the basic family food basket, especially in those whose prices are in free supply and demand, while in the case of those products that are included in the regulated price list, the situation could be different.

He indicated that in the case of the 14 items whose prices are regulated by an Executive Decree, the lack of profitability generated by the increase in production costs could end in a shortage of the local market, which could lead to the appearance of a parallel (black) market, as has happened in other countries that apply this type of measurements.

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