Abromavicius cancels the maximum markup on essential goods
Kiev
Ukraine's Ministry of Economy and Trade, headed by Lithuanian Aivaras Abromavicius, has prepared a resolution to abolish maximum markups on goods supplied by suppliers, which will lead to higher prices for social products, reports the Ukrainian website Apostrophe , citing a received copy of the draft resolution.
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The Cabinet of Ministers wants to abolish the maximum level of profitability for producers of socially significant goods, the publication reports, citing the text of the resolution received from sources in the ministry.
The last time the Ministry of Economic Development and Trade proposed completely deregulating the wholesale and retail prices of socially important goods was in the fall of 2014. However , it failed to gain support in the Cabinet of Ministers, as repealing Resolution No. 1548 would have exacerbated the social situation in the country.
The list of goods to which this restriction applies includes: flour of various types, bread weighing more than 500 g from premium, first and second grade wheat flour, buckwheat, oat and wheat cereals, white sugar, pork (except boneless meat), meat chicken (except fillet), cow's milk with a fat content of up to 3% (packaged in film), fermented milk cheese with a fat content of up to 10%, sunflower oil, eggs of the first and second categories, as well as baby food.
A top manager at one of the large retail companies noted in an interview with the publication that previously the government introduced state regulation to curb uncontrolled price increases: “However, now, if we remove price control at the level of the manufacturer and supplier, the price for the end consumer will increase, since it can be supplied any level of profitability and markup. And retailers put a markup on the purchase price of the goods.” An approximate increase in prices for socially significant products can reach 20%.
It's worth noting that last week, the Cabinet of Ministers lifted state regulation of prices for all types of passenger transportation except rail . This almost immediately led to higher fares in many cities and regions across the country.
Abromavicius abolishes maximum markup on essential goods.