Venezuela: Price controls extended to all products

Venezuelan vice-president Jorge Arreaza has announced that new measures to control prices will be extended to every single product in the country, limiting profit margins to a maximum of 30%.

Arreaza went on to say that the new categories will each follow a separate methodology to establish the proper price for a product, while also reminding traders, distributors and manufacturers that it will now be forbidden to use the phrase “Precio Justo” (Fair Price) on product labels.

The vice-president has explained that the new measures and calculations will benefit national industries instead of importers, with national producers and traders earning 30% profits while importers will be capped at 20% margins. Arreaza called this a “signal for us to support national industries.”

The government official added that public sales prices and fair prices will have to be “built up” while restricting abusive profit margins. These measures have been consulted with most major producers of ‘basic needs’ products, the majority of whom “agree with the measures. Those who don’t agree, well, they’re in trouble.”

Source: El Universal

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