The Bureau of Standards is laying down the hardline on butane or LPG importers by declaring fixed prices. Usually, they only set out a maximum price, or ceiling - but, now, the game has changed due to what the bureau calls "predatory pricing" by the major importers.
A release from the bureau says that the major importers are, quote, "driving prices downward well below the maximum ceiling for retail and wholesale of LPG. This temporary measure therefore is critical to keep local operators of LPG in business." End quote.
So, basically, these Central American importers, who are also suppliers are pushing prices down, so low that the small, local butane vendors cannot match those retail prices - which are often below their cost price. This is called predatory pricing because it is designed to drive those competitors out of business and create a consolidated monopoly.
Now, with the fixed price regime they won't be able to continue this practice, at least not publicly.Channel 7