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In Harare, some small retailers, mostly Chinese suspended operations citing low prices while all beef auctions were on Tuesday suspended due to the new pricing scheme.
On Monday, government cracked down on business, ordering manufacturers, wholesalers and retailers to revert to the prices they were charging on June 18 saying the incessant price hikes which have been obtaining of late were a ploy to topple President Robert Mugabe’s Zanu Pf governemnt.
Government ordered business to slate prices of basic commodities by at least 50percent, a development which saw major cities bustling with activity as the impoverished Zimbabwean community was afforded a chance to once again do massive shopping.
Major supermarkets like OK and TM took heed of the directive and reduced prices of certain products.
By the end of business on Tuesday, Mazoe Orange Crush whose price was reduced from $600 000 to $120 000 was wiped off the shelves.
The price of bread was also reduced from between $45 000 and $55 000 to $22 000 while a tablet of Geisha bath soap now costs $65 000 from $120 000 and a litre of fuel was set at $55 000 for diesel and $60 000 for petrol.
The development also saw prices of government owned publications like Herald and Sunday Mail being brought down by $10 000.
However, fuel dealers remained defiant with a litre of both diesel and petrol selling at between $145 000 and $170 000.Dealers argued government had no right to control the price of something it did not produce.
They said they imported fuel from neighbouring countries like Botswana and South Africa and risked making losses were they to take heed of “government’s madness”.The controversial commuter omnibus operators, instead of reducing fares to the gazzeted $15 000 per trip,actually increased their fares from $30 000 to $50 000 in direct defiance of the government directive.
Business was irked by the development and some retailers understandably hoarded goods in protest.
However,the government last night announced that it intends to further reduce the prices as it continues to protect consumers against unscrupulous manufacturers and retailers.
In a statement,Industry and International Trade minister,Obert Mpofu, said a “comprehensive” schedule showing all the products and prices was being compiled and would be released soon and added that the initial list was only a sample.
“The list that was published today (Tuesday) does not clearly reflect on the true picture of the true prices as determined by the Price Stabilisation Committee. So the committee is now working on exact prices of all commodities which will be published very soon”.
“The list published is a bit erroneous. A list that will be showing all prices across the board will soon be out and it is on that basis that the prices will have to be guided,” he said.
He said his team will leave no stone unturned and threatened it will nab all unscrupulous businesspeople.
“We are quite aware of the tricks that they are employing but those will not work. I am informed that by the end of the day (yesterday) the shelves were empty. But let them also know that hoarding is another serious crime. We are leaving no stone unturned.
“We know that they are going to use all tricks but let me say to them, they are just wasting their time. We are coming in full force and will not tolerate any nonsense”, he said.
At an industry meeting last week, Confederation of Zimbabwe Industries president, Callisto Jokonya together with other industry captains warned government that it was destroying industry with its unprecedented zeal to control commodity prices.They called for a free market economy that would operate to the best of every Zimbabwean.
So charged was the meeting that Kenias Mafukidze, of KM Financial Solutions broke down as he questioned whether government ministers who sit in Cabinet think of the future of their children when they make decisions that affect the lives of Zimbabweans and performance of the economy.
Irked by industry calls, Finance minister, Samuel Mumbengegwi who was among other six government ministers in attendance walked out on business while Obert Mpofu announced the new pricing regime less than a week after the meeting- CAJ News.