JEDDAH, 29 August 2005 — Saudi authorities have warned that fines ranging from SR5,000 to SR10,000 will be imposed on businesses which raise prices of their goods and services, exploiting the recent pay increase announced by Custodian of the Two Holy Mosques King Abdullah for government employees.
According to Al-Watan Arabic daily, three restaurants in Majarda were fined SR5,000 each for increasing prices of fried chicken. It said the Majarda Municipality took the action after receiving a number of complaints.
Municipal Chairman Mosleh Al-Olayani said his organization had warned the restaurants and other businesses that they would face closure if they repeat the offense.
Ali Al-Shahry, a Saudi, said the three restaurants had increased the prices of fried chicken from SR10 to SR12, citing increase in wholesale prices of chicken. But restaurant owners said they increased the price with the permission of the municipality. The municipal chief denied the claim, saying it was not within their authority.
Olayani said municipal officials were inspecting shops and markets to find out whether there was any artificial increase in prices. Fines ranging from SR5,000 to SR10,000 will be imposed on violators, he warned.
The Commerce and Industry Ministry said it had received several calls from citizens on price increase through its toll free number 8001241616.
