MALAYSIA: A rise in crude palm oil prices could lead to an increase in toilet soap prices, according to industry sources.
“The price of crude palm oil has increased. The impact of this raw material price increase has to be evaluated,” said a spokesperson for Hindustan Lever Ltd. (HLL), when asked about potential price hikes.
An official at Godrej Consumer Products Ltd. (GCPL) said the company is also evaluating the situation, but that it will not resort to price hikes until the HLL triggers it.
If the companies decide not to raise prices, their margins could be impacted if raw material prices continue to rise. If HLL does effect a price increase, it will be the first price increase in toilet soaps this year, executives said. HLL had raised prices of certain toilet soaps in December 2004 due to escalation in costs.