Several business sectors are taking advantage of the COVID-19 crisis to implement price hikes

Despite the catastrophic effects sparked by the COVID-19 pandemic , some business sectors have benefitted from the global sanitary crisis .

Although the majority of industries have been affected. Tourism , transport , restaurants , and entertainment have been affected by quarantining , isolation, and the closure of borders . However, other businesses and services have found new business opportunities that will allow them to survive the crisis that will strike other sectors.

In the case of the pharmaceutical industry , and companies that produce medical equipment and supplies, especially those who produce ventilators and hygienic products such as hand sanitizer, it will benefit from the coronavirus outbreak . Other areas that will benefit from the pandemic are courier services and streaming giants, as the demand for products and entertainment has increased since entire families have gone into quarantine .

Nevertheless, in Mexico , after the implementation of the second phase of the contingency plan , the price of several basic and non-basic products has increased in recent weeks, hikes motivated by economic uncertainty but also by those who want to take advantage of a critical moment when the population is giving priority to their diet and to meet sanitary measures.

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In response to the increase in prices, the Profeco has the faculty to implement its extraordinary powers , which are rarely used, including fines for up to MXN $3 million, the closure of businesses, and the restrain of products. These sanctions can be imposed against companies and businesses that take advantage of the emergency by increasing the price of basic products, arguing precarious production conditions or the increase in the price of supplies after borders close.

For example, the price of basic products such as eggs and tortillas have increased in recent days, even when they are national products that are not affected by international restrictions.

It is obvious that these price hikes are sparked during shortages but there is no need to reach extreme situations and drastic measures as in the case of Venezuela. The country, under the leadership of Nicolás Maduro, tried to control prices but the measure motivated widespread shortages.

In the end, we all have to make sure all parts fulfill their roles within the business and service sectors with honesty.

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