Fabian Demicoli

Pricing Products in Euros and in Malta Lira

GRTU has given Maltese Traders and Retailers and Service providers clear instructions on what they should do to steer away from the problems created by the unnecessary impositions made by NECC on the question of dual-pricing Maltese Lira/Euro.

GRTU is saying that loading any extra charge on the Euro side of dual pricing is wrong and defeats the whole aim of a Euro Changeover without any loading. GRTU contends that the Euro pricing should not be used as an excuse by businesses to recoup losses made as a result of increased costs due to electricity and water surcharge, bank charges or whatever. These charges should be reflected in the Maltese Lira price and not on the Euro price.

GRTU has given Maltese Traders and Retailers and Service providers clear instructions on what they should do to steer away from the problems created by the unnecessary impositions made by NECC on the question of dual-pricing Maltese Lira/Euro.

GRTU is saying that loading any extra charge on the Euro side of dual pricing is wrong and defeats the whole aim of a Euro Changeover without any loading. GRTU contends that the Euro pricing should not be used as an excuse by businesses to recoup losses made as a result of increased costs due to electricity and water surcharge, bank charges or whatever. These charges should be reflected in the Maltese Lira price and not on the Euro price.

The Euro price must be, and seen to be, and easily calculated by consumers, to show an honest exchange based only on the central purchasing rate Euro: Malta Lira without any loading whatsoever. Businesses will save themselves unnecessary questions by consumers and will save themselves the time to explain to any enquiring inspectors the basis of their Euro pricing if they follow GRTU instructions.

If the Euro Changeover is to work and Euro is not to be blamed by consumers for all the price adjustments that retailers and service providers do from time to time, the Euro exchange rate must not be loaded. Any loading if necessary, should go where it ought to go: on the price tag of the product. Dual pricing is costly. Businesses should either disregard it completely or if it is good for their business, make sure the cost is covered in the price of the product and not by topping the exchange rate.

Chamber of Commerce and the FOI disagrees with this. GRTU disagrees with them and strongly advises business owners to follow GRTU advice and save themselves unnecessary trouble. GRTU believes in the Euro as much as Chamber of Commerce and FOI but GRTU does not want the Euro to be blamed for price increases. Price increases occur as a result of many causes. These should appear on the Maltese Lira price of the product and not blamed on the Euro.

Furthermore, certain guidelines and representations made by NECC will cause and stimulate inflation. The NECC is not seeing the whole picture. It is astonishing that Chamber and FOI endorse such attitude.

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