The ministry has fixed the sale price of red bricks for factories at SR2,400 and for distributors at SR2,600.

The ministry intervened after it noticed that prices of red bricks have gone up tremendously in the local market in the few past weeks reaching as high as SR3,800 per 1,000 bricks.

Abdullah Al-Husni, a Saudi contractor, said he had to stop construction of a building because of the high prices.

The contractor said many Saudi citizens have deferred their building plans due to the unreasonable hike in prices.

“Despite the decision of the ministry fixing rates for both factories and retailers, the prices continued their upward journey,” Al-Husni said.

Minister of Commerce and Industry Abdullah Zainal Alireza recently issued orders to treat red bricks as a consumer good and apply regulations concerning sale of consumer goods on them as well.

Alireza set the new prices after his ministry received a number of complaints to this effect from citizens.

The ministry said its concerned officials held a series of meetings with manufacturers, distributors and consumers before deciding the new prices, which it described as fair and reasonable.

The ministry stressed that the new retail price of SR2,600 will also include the cost of transportation from factories to work sites.

“Punishments will be strictly applied to violators of price regulations,” it warned.

According to ministry sources, the punishments may include fines and publicizing their names in newspapers.

The ministry announced it has set up special committees to monitor the market.