RIYADH, 25 April — The Commerce Ministry is currently looking into complaints lodged by four local lubricant oil companies, which are accusing importers of dumping the market with low quality oils, causing heavy losses for the local firms.
Saudi Arabian Lubricant Oil Company (Petrolube) alleged that Commerce Ministry labs have not been cooperating with them to put an end to the dumping even though they have provided them with the negative results of the tests on samples of imported oils.
However, Commerce Minister Osama Faqeeh said that his ministry had set up a committee comprising representatives from various departments to follow up the complaints. He added that the matter would be settled shortly.
The ministry labs check all the goods being imported into the Kingdom, Faqeeh said, adding that imported and locally manufactured products are accepted on condition that they comply with local quality standards.
Faqeeh said the ministry wanted to see appropriate and fair competition between importers and local producers. “Imported products create competition to the benefit of consumers, in terms of quality and prices,” he said.
Arab News learned from sources at the ministry’s department of labs that the committee had presented its proposals to higher authorities to take a decision.
An official source at Petrolube said that local lubricant companies were facing a crisis due to a fall in sales and decline in profits as a result of the dumping of low quality products from neighboring countries.
He said the imported oil had caused harm to vehicle engines as it does not conform with local standards.
However, a source at Alhamrani-Fuchs Petroleum Saudi Arabia, a leading lubricant company, said that local companies must fulfill their commitments to clients by complying with the latest quality standards.
“The low quality of imported products will definitely give locally manufactured goods a marketing edge,” he added.
