Follows allegations of unethical business practices in the locality in the aftermath of the Dechencholing flood
Exploitation by unethical businesses are common phenomena during natural disasters when supply of goods is disrupted due to breakage in the supply chain. It is therefore imperative to surveil prices and take actions as per existing consumer protection laws during such times. This is the highlight by the Competition and Consumer Affairs Authority (CCAA) in their report on the verification of allegation of price gouging of basic commodities by grocers of Dangrina following the recent Dechencholing flood.
The CCAA conducted a two-day inspection on 12 & 14 August, 2024, following the receipt of information on suspected price gouging by business firms in Dangrina, which had remained cut-off from Thimphu in the wake of the Dechencholing flood on August 10, 2024.
“It is necessary to monitor the market prices during such times. Past experience especially during COVID pandemic lockdowns have shown that businesses tend to exploit disruptions in the market for greater profit which harms consumers whose normal lives are already affected by natural disasters,” the report underlined.
The CCAA team inspected 13 grocers in the locality and collected prices of 20 most essential commodities. The average selling prices (ASP) in Dangrina were compared with the average prices collected from five popular grocers located in Thimphu town.
The results varied, in that prices were up and down depending on the commodity. However, there was no consistent patterns of higher prices indicate of price exploitation by grocers in Dangrina. Concurrently, most grocers in Dangrina did not adequately display prices of goods and were directed to prominently display prices of all goods in the future for the benefit of consumers.
Meanwhile, in separate instances, inspection was conducted during the first two weeks of August of all petroleum retail outlets (PROs) in Thimphu to ascertain fuel from the PROs are accurately dispensed, The inspection also covered assessment of fuel quality (density and water content), validity of calibration for measuring and dispensing equipment, compliance to safety measures, display of prices and whether cash memos are being issued. All the seven outlets operating in the jurisdiction of Thimphu Thromde and Thimphu Dzongkhag were inspected. These PROs were Bhutan Oil Distributor (BOD) at Lungtenzampa and Motithang, DPDPL at Semtokha and Changzamtog, DPCL at Chubachhu and Langdro, and STCBL at Ramtokto.
Findings & observations: Pumps and nozzles (accuracy of fuel dispensed)
There was a total of 24 pumps [11 for Motor Spirit (MS), 13 for High-Speed Diesel (HSD)] at the seven PRO. Out of these, 7 pumps consisting of 17 nozzles were non-operational due to non-connection to the underground storage tank or technical issues. Of the 73 nozzles (from the 17 functional pumps), 8 nozzles were defunct, 11 were uncalibrated, 3 failed to meet the BSB tolerance level while the rest were fully functional and within the permissible range of 0.5% (±0.5% = 25ml)
Fuel quality (density and water content)
The density of MS and HSD at all 7 PROs was within the permissible range (±3 kg/m3). Water content in the storage tanks were all within maximum acceptable limit (8cm) at all PROs.
Calibration and equipment
Except for PRO (DPDPL) located in Semtokha, measuring devices such as hydrometers, thermometers and cylinders at all other PROs did not have valid calibrations. At the PRO (DPCL) located in Langdro, the hydrometer was non-functional and the weighing balance to weight LPG cylinder was uncalibrated. The PRO (DPDPL) located in Changzamtog did not have a hydrometer. Further, the lid of the HSD underground tank was also missing. The 5L brass measuring jar at PRO (STCBL) located in Ramtokto was due for calibration.
Compliance to safety standards
The Consumer Safety Board at PRO (DPDPL) in Changzamtog was faded and illegible. The fire extinguishers at PRO (DPDPL) in Changzamtog and PRO (DPCL) in Langdro were past expiration date, while the extinguisher at PRO (DPCL) in Chubachhu was reaching expiration date. There was no back-up sand stock at PRO (DPDPL) located in Changzamtog.
Display of retail selling price of fuel & LPG, and issuance of cash memo
All 7 PROs displayed Retail Selling Prices of fuels and LPG prominently at their premises. All PRO had pre-printed purchase receipt/ cash memo available for issuance upon customer demand.
Actions taken & recommendations
Sale of fuel from the failed nozzles at PRO (BOD) in Motithang, PRO (DPDPL) in Semtokha and PRO (STCBL) in Ramtokto were stopped immediately till they get it repaired and calibrated by the Bhutan Standards Bureau (BSB).
The PRO (DPCL) in Chubachhu, PRO (DPDPL) in Semtokha and PRO (BOD) in Motithang were directed to stop using uncalibrated nozzles, till they get it calibrated by the BSB. All PROs that carried un-calibrated measuring devices (Hydrometers, Thermometers and Measuring cylinders) were directed to get them calibrated immediately.
Similarly, the PRO (DPCL) in Langdro and PRO (DPDPL) in Changzamtog were directed to replace hydrometers immediately. The PRO (DPDPL) in Changzamtog was directed to replace the Consumer Safety Board and ensure adequate stock of back-up sand. Similarly, the PRO (DPCL) in Langdro, PRO (DPDPL) in Changzamtog and PRO (DPCL) in Chubachhu were directed to replace expired extinguishers immediately. In addition, the PRO (DPDPL) in Changzamtok was directed to replace the lid of HSD underground tank immediately.
By Tashi Namgyal, Thimphu
