JEDDAH, 17 April 2008 — Economic experts have called on the government to appoint a consultancy firm to study the reasons behind the unprecedented rise in prices of commodities within the Kingdom and how the state can support families without being exploited by importers and other parties.
The experts, who have been appointed by Commerce and Industry Minister Abdullah Zainal Alireza to study the issue of price hike, proposed that the chambers of commerce and industry across the Kingdom support the consultancy firm to study the average standard of living of citizens and the factors that negatively affect family budgets.
It also observed that importers were the main beneficiaries of rice and baby milk subsidies offered by the government.
The team also called for a comparative study of services at Dubai Port and Jeddah Islamic Port to strengthen the latter’s position in the region.
They further emphasized the need to reduce import tariff on foodstuffs and other essential commodities, as local output of these products was not enough to meet the Kingdom’s requirements.
Spelling out the main reasons for price hike, the team said they include a rise in shipping and insurance charges, and prices of oil and petroleum products. Increase in crossing tolls on the Suez Canal and high charges at Jeddah port were other reasons cited.
