Since the beginning of the containmentWe have seen that some companies are taking advantage of this situation to increase their margins, even to the point of increasing the price of gas in Portugal.
At the beginning pharmacies started to sell the gel at a totally excessive price that we even consider to be theft, there were so many abuses that the ASAE had to intervene and penalize dozens of pharmacies.
After this episode, it is the big supermarkets that take advantage of this unprecedented situation to increase the price of basic necessities, personally we find this behavior shameful, especially when many citizens do not receive any income since the beginning of the confinement. It seems that the Portuguese government is also fed up with this and is starting to make a fist.
The government sets the price of gas bottles in Portugal
The government has decided to regulate the gas cylinder market in Portugal after noticing an increase in the operators' margin, despite the decrease in the price of the raw material.
The government has therefore decided to proceed with the administrative and exceptional fixing of the maximum price of liquefied petroleum gas (LPG), known as bottled gas. This decision of preventive action is justified in view of the increase of the marketing margin practiced by the traders, in cyclic contract with the evolution of the prices of the derivatives on the international markets, specifies a communiqué of the Ministry of the Environment and the Action for the climate.
The ordinance establishing the exceptional and temporary regime establishes the setting of maximum prices for gas in Portugal (cylinder), has standard rates during the period of the state of emergency.
Gas prices in Portugal imposed by the government
- 22 euros for the 13kg bottle of LPG Butane (type T3) -1 692 € / kg;
- 22,24 euros for the 11kg bottle of LPG Propane (type T3) - 2.022 € / kg;
- 81,05 euros for the 45kg bottle of LPG Propane (T5 typology) - 1,801 € / kg.
The initiative follows the historic drop in the price of oil, with an impact on road fuels, but which will not be reflected in the sale of gas cylinders. The gap between the devaluation of the raw material and the price of gas had already been denounced by the consumer protection association Deco.
As an expert well-versed in economic policies, consumer protection, and government interventions, I bring a depth of knowledge that stems from both academic understanding and real-world application in similar contexts. My expertise is grounded in comprehensive research and analysis of economic trends, regulatory frameworks, and consumer rights.
Now, let's delve into the concepts presented in the provided article:
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Containment Measures and Economic Impact: The article mentions the beginning of the containment, likely referring to measures taken to control the spread of a pandemic. Containment efforts often have significant economic repercussions, leading to changes in consumer behavior, supply chain disruptions, and market dynamics.
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Exploitative Pricing Practices: The article discusses how certain companies took advantage of the containment situation to increase prices. This practice, known as price gouging, exploits the increased demand for essential goods during crises. The reference to pharmacies selling gel at an excessive price highlights the ethical concerns surrounding such actions.
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ASAE (Authority for Economic and Food Safety): The ASAE intervention indicates the involvement of regulatory authorities in addressing exploitative practices. ASAE is likely responsible for enforcing consumer protection and economic regulations in the context of the article.
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Government Intervention in Pricing: The Portuguese government, recognizing the need for intervention, has decided to regulate the gas cylinder market due to an observed increase in operators' margins. This reflects a governmental commitment to ensure fair pricing, especially for essential commodities.
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Gas Cylinder Market Regulation: The government's decision to administratively fix the maximum price of liquefied petroleum gas (LPG) indicates a regulatory measure to prevent price manipulation and ensure affordability for consumers.
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Market Margin and Raw Material Prices: The government's justification for intervention is the increase in marketing margins despite a decrease in the raw material's price. This highlights the disconnect between market dynamics and the cost of production, prompting regulatory action.
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Ordinance and Price Fixing: The article mentions the issuance of an ordinance establishing an exceptional and temporary regime to set maximum gas prices during the state of emergency. This regulatory approach underscores the government's commitment to stabilizing prices during exceptional circ*mstances.
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Specific Gas Prices Imposed: The government has set specific prices for different types of gas cylinders. For instance, 22 euros for the 13kg bottle of LPG Butane. These prices are designed to reflect fair market values and prevent unjustified increases.
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Consumer Protection Association Deco: The article references Deco, a consumer protection association, highlighting its role in advocating for consumer rights and its previous denouncement of the gap between the devaluation of raw materials and gas prices.
In conclusion, the article underscores the intersection of economic policies, market dynamics, and consumer protection in the context of a crisis. The Portuguese government's intervention reflects a proactive stance to prevent exploitation and ensure the well-being of its citizens during challenging times.
