Powers vested to the Authority by CAA Act No.9 of 2003, for regulating the Pricing Mechanism
(A) Section 14 – Agreement to provide for maximum price of good.
The Authority may enter into written agreement
With any manufacture or trader or
Any association of manufactures or traders
To provide for
(a) Maximum price of any goods
(b) The standards and specifications of goods manufactured, sold or offered for sale.
(c) Any other conditions as to the manufacture, import, supply, storage, distribution, transportation, marketing, labeling or sale of any goods.
(B) Section 18(3) – Prior written approval for price revision application of specified goods.
Where the Minister is of the opinion that any goods or any service is essential to the life to the community or part thereof, the Minister in consultation with the Authority may be Order published in the Gazette prescribe such goods or such service as specified goods or specified service the case may be.
A manufacture or trader who sees to obtain the approval of the Authority under subsection (2), shall make an application in that behalf to the Authority, and the Authority shall, after holding inquiry as it may consider appropriate –
(a) Approve such increase where it is satisfied that the increase reasonable or
(b) Approve any other increase as the Authority may consider reasonable
And inform the manufacture or trader of its decision within 30 days of the receipt of such application.
(C) Section 19 & 20 – By order published in the Gazette, fix the maximum price.
Where it appears to the Director General that any goods are being sold or any services are being provided by a manufacture or trader at an excessive price the Director General may in consultation with the Authority, refer such matter to the council for investigation and report.
On the receipt of the recommendation of council under section 20(4), the Authority shall by order publish in the gazette, fix the maximum price.
Manufacturer or Trader shall not increase the price of any specified good or services without the prior approval of the Authority. To obtain the approval of the Authority the applicant must be sent the application to the Authority.
The process of Price Revision Application (Under Sec 18)