CONSTRUCTION MATERIALS PRICES TO BE CONTROLLED

       Producers of construction materials will be allowed to hike their retail prices if the price of diesel increases another Bt5 a litre, the Commerce Ministry said yesterday.
       The unavoidable increase of Bt5 a litre will directly affect transportation costs and the production costs of manufacturers, it said.
       Construction materials are on a list of goods for which prices are controlled. The ministry recently extended price-control measures on the list of goods until the end of the year.
       High on the ministry's agenda at present is the enhancement of domestic consumption in line with the government's Thai Khemkhaeng project.
       Commerce Minister Porntiva Nakasai said that the ministry would attempt to curb price increases for construction materials until the end of this year to help shoulder consumers' expenses.
       "Money from the Thai Khemkhaeng project, which will soon be injected into public investment, will partly stimulate growth in the construction industry. The government will try to curb the retail prices of these products to ensure a lower burden on consumers, while traders will not take the opportunity to increase their retail prices," Porntiva said.
       After inspecting the prices of construction materials on Monday, the ministry found that most prices were within its recommendations.
       As of September 2, the price of steel rod had increased slightly from Bt107.29 in August to Bt109.78, or from Bt21,500 to Bt22,000 per tonne. The retail price of mixed cement (Tiger brand) is quoted at Bt135 to Bt142 per 50-kilo bag, lower than the ministry's recommended price of Bt144 per bag. Portland cement (Elephant brand) is quoted at Bt145 to Bt156 per bag, while the recommended price is Bt161.
       Internal Trade Department director-general Yangyong Phuangrach said the ministry would only consider allowing steel prices to increase if domestic diesel prices rose by another Bt5 per litre.
       "The department will control prices as there are no serious negative factors to increase production costs for the remainder of this year," he said.
       Moreover, he said the department would not allow any producers, in particular producers of condensed milk, soda and canned fruits, to increase their retail prices as sugar prices remain unchanged.

       Commerce Minister Porntiva Nakasai said that the ministry would attempt to curb price increases for construction materials until the end of this year to help shoulder consumers' expenses.