GENERAL PRICE ORDERS (GPO)

PRESS RELEASE FROM THE MINISTRY OF COMMERCE, INDUSTRY AND LABOUR

The re-introduction of Price Control Order (PCO) under the State of Emergency Orders was made pursuant to Article 106 of the Constitution. The PCO was required given the impact of the Covid-19 pandemic and the need to protect consumers from traders that may seek to profit unfairly during the pandemic by increasing prices to unreasonable levels.

The current PCO will be effective on the 23rd December 2021. All traders are required to display the PCO in their shops, where customers are able to view.

The PCO covers a total of seventy one (71) basic consumer food items, including dry and freezer products. As such with the exception of Basic food items all other non PCO products prices are determined by normal market rules of supply and demand. In calculating the prices of goods in the PCO, the mark-up formula used to calculate wholesale and retail prices is inclusive of VAGST and in-built transportation costs. The table below provides details of how prices are calculated for each good(s) in the PCO.

Wholesale Price

Dry goods (Upolu): Landed Cost + 12.5% w/sale mrk~up + VAGST

Retail Price

Dry goods (Upolu): W/sale price (VAGST) + 20% retail mark~up

W/sale Price

Freezer goods (Upolu): Landed Cost + 15% w/sale mark~up + VAGST

Retail Price

Freezer goods (Upolu): W/sale price (VAGST) +22.5% retail mark~up

Wholesale Price

Dry goods (Savaii): Landed Cost + 18.5% w/sale mrk~up + VAGST

Retail Price

Dry goods (Savaii): W/sale price (VAGST) + 22.5% retail mark~up

W/sale Price

Freezer goods (Savaii): Landed Cost + 21% w/sale mark~up + VAGST

Retail Price

Freezer goods (Savaii): W/sale price (VAGST) +25% retail mark~up

There is no new added cost or tax by Government on imported goods except for the normal duties imposed by the Customs. The increase in prices of some products is solely due to the impact of the COVID 19 pandemic and the delay in shipments which is beyond our control.

Wholesalers, retailers and traders selling goods to customers are warned not to sell above the maximum prices set out by PCO when there is shortage of the supply of goods. Non-compliance with Price Control Orders is a breach of Emergency Orders approved under Article 106 of the Constitution and can incur a fine and or prosecution.

Customers are advised to inform MCIL or the Ministry of Police of any breach of the Price Control Order. You are also encouraged to provide us with a proof of sale when lodging your complaints.

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