The government may introduce official prices for some products. – I received dramatic information that in Kłodzko, what is most needed is significantly more expensive than before the flood. I warn all those who speculate or try to make money on the flood and human tragedy: we have legal tools related to states of emergency, which we will use to force a return to pre-flood prices – Prime Minister Donald Tusk said on Wednesday during the meeting crisis management team in Wroclaw.
Will there be official prices? Retail chains react
At the boss's announcement government she reacted Poland The Trade and Distribution Organization (POHiD), whose members are the largest retail chains, including Auchan, Biedronka, Ikea, Lidl, Leroy Merlin, Obi and Pepco. “In the face of flooding, retail chains have taken a number of actions to help those affected by the natural disaster. Retail outlets maintain full stock levels to provide products that are most urgently needed and ensure continuity of supply” – the organization reported on social media.
“Companies have decided to temporarily freeze prices on the most sought-after products. These prices will not increase, and many products are offered at promotional prices,” we read.
In turn, in a Friday statement, POHiD announced that international retail chains associated with the Polish Organization of Trade and Distribution have taken a number of actions to help people affected by the effects of the natural disaster. Support is being provided to residents and employees living in flood areas. “Stores have a special aid budget for emergency assistance in their area. The money is intended to purchase materials needed to remove the effects of the natural disaster” – the organization provided.
Economist assesses government's idea: Legal but ineffective
Economist Sławomir Dudek explained that the possible introduction of regulated prices for some products in flood areas is legal (Article 20 of the Act on the State of Natural Disaster), but in his opinion it may prove ineffective. “There is a risk that some goods will run out because the regulated price will limit supply. We must also remember that the state of disaster applies only to part of Poland, but what about prices in other regions?” – he wrote on social media.
He explained that there are many objective factors of price increases on the cost side. “After all, there are higher transport costs, certain goods are not in stock in sufficient quantities, they have to be imported from other regions, and there will be no regulated prices there. We have a whole chain of connections, prices and costs that should be taken into account,” we read. “I suggest great caution and rather unblocking supply and deep analysis of the subject, so as not to spill child with a bath,” the economist emphasized.