Bandar Seri Begawan - Higher shipping and raw material costs have raised the prices of car tyres, said distributors and retailers. It does not help that e-Custom charges have also affected retail prices of tyres in Brunei, they said.

Prices have increased by 20 per cent, and retail prices of some brands have gone up to as much as 30 per cent due to increased charges, said a retailer who wished not to be named.

"From what I've heard, people are saying that prices went up due to Brunei's e-Custom charges which they just started to implement as they claimed that goods are undercharged," he said.

The owner of a tyre store said his supplier has maintained the prices but charges from the Brunei side have raised retail prices, he claimed. He did not elaborate how customs charges contributed to the hike in retail charges.

"It's like the customs putting on a fixed price for the tyres, so even if suppliers sell it for cheap, there's no difference," he said, adding that the increase in price has affected his business.

"In general, it is affecting business because our customers have a fixed amount they can afford to pay for maintenance. This will make it harder for them as we've seen an increase of 10 or 20 per cent, some to the extent of 30 per cent," he said.

He explained that the only way they can counter this situation is to upgrade the service they provide because sometimes people don't mind paying a bit more if the service is excellent.

"That's what it's all about, people are looking at what kind of service is provided and even though prices go up, I still can show that they are paying for something worth (the price)," he said.

Another tyre store owner said that since last month, when the customs charges were introduced, prices went up 20 to 25 per cent.

"International rates for new tyres have changed but it's also due to the customs tax rate. Business has definitely been affected because customers are used to buying standard sizes for around $70. Now they pay more for the same product," he said, adding that the company has been giving value-added products and better services to overcome the situation.

Retailers can't tell how soon prices could go back to previous levels.

Jasmain Tay, Hock Motor Company's general manager, said prices have generally fluctuated throughout the years due to the increase in shipping charges and raw materials.

"If prices increase, it's going to affect sales. At the moment, we want to keep prices minimal for customers so it's affordable," Tay said.

The general manager said, however, it's out of their control sometimes.

"We are doing what we can to help customers and that includes talking to our factories to see what they can do for us... If it comes to a point where we can't sustain, we have no choice but to increase the prices as it is due to the international market," Tay said. -- Courtesy of The Brunei Times

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