JEDDAH, 6 September 2007 — Citizens and residents have demanded intervention by higher authorities in order to halt the escalating prices of essential commodities.
According to the National Society for Human Rights, the price hikes have affected 40 percent of the population. Many citizens blame the Ministry of Commerce and Industry for the crisis as they said the ministry did not act to stop rising prices, supply cheaper alternatives and enlighten the public on how to deal with the situation.
Dr. Bandar Al-Hajjar, chairman of the National Society for Human Rights, said his organization would work in coordination with government departments in order to solve the problem. He said five groups within society had been most affected by the price hikes: Retirees who receive a monthly pension of less than SR2,000; 575,000 families who receive assistance from social insurance; government employees receiving a monthly salary of less than 3,000; private company workers getting a salary of less than SR2,500; and those who have no monthly income. “These groups represent 40 percent of the population,” he explained.
Hajjar said the society would conduct a study of the reasons for the price hikes and their effects on citizens and residents in order to propose solutions. He noted the role of charitable societies in helping poor families affected by the hike. “We also call for the opening of the consumer protection society’s offices in various parts of the country in order to monitor market prices,” he said. He stressed the need for imposing tough punishment on traders who increase prices in order to exploit increased consumer demand.
Businesswoman Amani Abdul Wasie said the ministry should have an emergency plan to address price hikes that affect a large number of people. “The ministry is standing as an observer in the face of the crisis and this is unacceptable,” she said. Abdul Wasie noted the efforts of other countries with free economies to ensure a smooth flow of goods and protect the interests of citizens by intervening indirectly to manage the crisis. She said consumers in the Kingdom face problems such as lack of proper information, the non-punishment of people engaged in fraudulent trade practices and the non-activation of the consumer protection society.
The price hikes come with the advent of Ramadan when Saudis and expatriates purchase large quantities of foodstuffs. Supermarkets and grocery shops across the Kingdom have been filled with Ramadan shoppers.
According to one survey, Saudis believe that the Ministry of Commerce and Industry has failed to deal with the crisis. They feel that the crisis has gone out of control with prices of essential commodities, including rice, milk, fruits and vegetables increasing everyday.
