Venezuelan gov't to cut prices of regulated products up to 61%

Venezuelan President Hugo Chávez has been announcing in dribs and drabs the new prices of the 19 items whose prices were frozen in November. "I enjoy doing justice," Chávez said.

The Venezuelan Head of State announced last week that the prices of the 19 products would be lowered and on Thursday, February 9, he said the new retail prices of Minalba 1-gallon bottled drinking water and 90 g Mum Roll-On deodorant.

According to Chávez, the price of Minalba water, which is marketed by Pepsi-Cola Venezuela, will be cut from VEB 23 (USD 5.35, at the official exchange rate of VEB 4.30 per US dollar) to VEB 12.45 (USD 2.9), a 45.86% price cut. "The price I have decided to set is USD 2.9," Chávez said.

"Of course they have profits! It is water! The company just collects water. Who produces water? The hand of God. They collect the water, put it in a bottle, and sell it very expensive, and they become increasingly richer."

In the case of the Roll On deodorant, the Executive Office decided to cut the price by 24.15%, from VEB 17.8 (USD 4.14) to VEB 13.5 (USD 3.14). "They will still make money. We are not asking them to lose. We are asking them to make a rational profit and not to steal people's money," he added.

Although the Venezuelan president only announced the new prices of two products and tried to prevent TV cameras from showing the document he was reading, a quick image showed that the price of some products will be cut up to 61%, and the price of one type of shampoo will be lowered from USD 10.93 to USD 6.05, a 37% decrease.

President Chávez said that he will sign on Friday the report prepared by the Superintendence of Fair Costs and Prices (Sundecop) including all new prices.

Chávez also stressed that the Venezuelan government will seize those companies that fail to sell the products with the new prices set by the government and it will expropriate any firms claiming that they cannot operate with the new profit margin.

The Venezuelan Head of State also insisted that the government will continue promoting social ownership at the expense of what he called "great bourgeois property."

Translated by Gerardo Cárdenas