Venezuelan President Chavez orders 24% price reduction on P&G's deodorant in effort widen price controls, slow inflation, adds that companies who don't comply will be seized

LOS ANGELES , February 10, 2012 () – Venezuelan President Hugo Chavez ordered Procter & Gamble Co. (P&G) to reduce the price of its deodorant and added that he would seize the company if it doesn't comply, Bloomberg reported Feb. 9.

P&G's deodorant will now sell for US$3.14, a 24% reduction from its previous price.

P&G was one of several other companies being asked to reduce the prices of its goods.

“They’re still going to make money, we’re not asking them to lose money, but the profit has to be rational, they can’t rob the people,” Chavez said on state television. “If one of these companies says that they can’t comply with this, there’s no problem, I’ll take the company and give it to the workers and we’ll produce at a lower price and still make profit.”

Last year, Chavez ordered a price freeze of 10 consumer and cleaning products in effort to widen price controls and slow inflation.

The Venezuelan government will provide a comprehensive list of new set prices for the first stage of controls, Bloomberg reported.

The primary source of this article is Bloomberg, New York, New York, on Feb. 9, 2012.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.