JEDDAH, 7 January 2008 — Saudi authorities yesterday warned traders that they face punitive action if they hike prices of commodities, and urged Saudis and expatriates to inform on businesses that violate regulations and charge higher prices.
“If traders increase fixed prices or fail to display the list of prices, they will be asked to pay fines ranging between SR1,000 and SR5,000. If they repeat the same offense, the shop will be shut for up to a week,” Abdul Rahman Al-Zenaidi, undersecretary at the Riyadh Municipality said.
He said members of the public could contact the municipality with complaints and observations about prices of goods at shops and markets by dialing 940. The Cabinet has already instructed officials to impose fines on businesses that violate prices.
Al-Zenaidi’s statement comes in the wake of increasing prices of essential commodities at shops and supermarkets across the Kingdom. Many people have urged the Commerce and Industry Ministry to intervene to stop the price hike.
Commerce and Industry Minister Hashim Yamani met with milk producers in the Kingdom on Saturday after they decided to increase prices by 20 percent.
According to the Saudi Press Agency, the milk companies justified the price rise, saying it was due to rising production costs. They also argued that milk prices in Saudi Arabia were far below those in many other countries.
The minister reminded producers of the subsidy their industry receives from the government and asked them to reciprocate by charging reasonable prices.
Yamani requested producers to bring prices of dairy products back to previous levels, SPA said, adding that the producers had agreed to seriously study the matter. Informed sources said Yamani planned to meet with milk producers again.
At present, two-liter cartons of Nadec, Almarai and Al-Safi milk are being sold for SR7, while Hana is being sold for SR5 and Nada for SR6. A one-liter bottle of Nada milk is being sold for SR3 and Nadec for SR4.
The minister met separately with big rice importers to discuss how to control growing prices. The prices have gone up even after rice sales have been subsidized at the rate of SR1,000 per ton. The meeting heard a proposal to establish a company solely to purchase rice. Yamani urged businessmen to ensure there is an adequate supply of rice and that they import different types of rice to provide choice to consumers.
