6 June 2024

Consumers in Thailand will be feeling the pinch of rising prices of a wide range of products, from instant coffee, cooking oil and instant noodles to condensed milk, shampoo and soap among others, as a result of the fallout from oil price increases.

Several manufacturers have already notified their wholesale outlets of price increases, to become effective on May 1st, although prices of several products have already quietly increased.

The price increases of many products may not yet have taken into account the increase in the price of diesel fuel, initially, from 30-baht/litre to 32-baht/litre, effective on May 1st, which will push up transportation costs.

Truckers, under the banner of the Land Transport Federation of Thailand (LTFT), have threatened to increase transport charges if the government does not respond to their call to help them ease the increased financial burden caused by the fuel price increase.

Diesel prices will increase step-by-step, up to 35-baht/litre, the ceiling price announced by the Fuel Fund Executive Committee of the Energy Ministry.

Pipat Paniangvait, CEO of Thai President Foods Plc, producer of Mama instant noodles, admitted that the cost of production has increased substantially.

The prices of raw materials, such as wheat flour and palm oil, have increased by about 70% over the past two years and the company has not increased the retail prices of Mama instant noodles for 14 years, according to the company.