Irate consumers seek govt action against price hikes

With mandatory price labeling in Arabic and English coming into force, many consumers still reeling from price hikes are calling for government to clamp down further on market manipulators.
Consumers have welcomed the compulsory price labeling — which will be enforced with fines of up to SR 100,000 and see repeat offenders shut down for up to a year — but want other measures introduced.
Shoppers interviewed at local markets have suggested various additional measures, including setting up complaint kiosks for consumers and even boycotting of certain food companies.
Samia Al-Oufi, a Saudi shopper, suggested consumers unite to boycott certain food companies involved in unfair practices. She said that this would be an effective and long-term solution, which would expose the manipulators in the industry.
Rabeh Al-Otaibi, an academic, said the Ministry of Commerce and Industry should produce and distribute brochures with prices of all goods to all shops and markets, especially food products, rather than just publish these details on its website. “In this way, the consumer will become familiar with the approved prices. This would ensure some public control over markets,” said Al-Otaibi.
Adel, a university student, urged the authorities to set up kiosks at local markets and hypermarkets where consumers could lodge complaints about high prices.
Meanwhile, prices continue to rise, as Arab News found on a tour of local shops.
Some brands of Edam Dutch cheese have risen by 23 percent over the last two months. Some packs of low fat cheese are now sold at SR 13.50 compared to SR 9.50 previously. A manager at one branch said prices have gone up because of rising shipping and transportation costs.
White feta cheese has gone up by one riyal from SR 11 to SR 12 for some brands and around two riyals for other brands, from SR 11.50 to SR 13.50.
A well-known brand of cheddar cheese has risen 26 percent from SR 14.50 to SR 19.50 for a 500-gram block. The manager of a hypermarket in northern Jeddah said he could not comment because he was not responsible for setting prices.
The same 500-gram block of cheese is sold at some hypermarkets at a “reduced price” of SR 14.50, in an attempt to deceive customers that it is a real deal.
Local white cheese sold by weight such as Akawi and Nabulsi has seen price increases of between 5 and 6 percent.
Poultry has seen the biggest price hikes from SR 9.95 to around SR 14 for 900 grams of frozen or imported pieces.
Ghassan Al-Asa’ad, an Arab expatriate, said the continuous price hikes are causing major headaches for consumers because it has become a major part of the rising cost of living.
Arshad, a worker at a mini-market, told Arab News that some food companies were gradually increasing wholesale prices, which will have a major impact in the long term.
“A box of eggs containing 12 egg packs was sold wholesale at SR 160 last month. Now the price has risen by five riyals,” he said.
The manager of a local supermarket, who preferred to remain anonymous, said retailers are trying to deceive consumers with their pricing strategies. “Some food producers, suppliers and even some supermarkets and hypermarkets deliberately raise prices, taking advantage of customers’ ignorance of real prices. After the hikes they cut prices to the previous levels, thus deceiving buyers that these are real cuts,” he said.
Some small shopkeepers and grocery owners prefer not to tamper with prices because they do not want to lose their regular customers.
Saleh, the owner of a local grocery in Al-Faisaliah District, said this was not the case with other big hypermarkets, which will still have demand for their products even if they raise prices.
Consumers wishing to complain about price hikes can call the Ministry of Commerce and Industry's toll free number 8001241616.