Acting president of the Consumer Protection Association (CPA) Nasser Tuwaim said the price increases are in response to last month’s announcement by Custodian of the Two Holy Mosques of a financial benefit package, including a bonus equivalent to two months' salary.
Business owners have often claimed that they increase prices due to the global recession, high rates of inflation in the Kingdom or even the weakness of the US dollar and its effects on the Saudi riyal it is pegged to.
Although economists agree there have been in the past negative effects brought on by global economic factors, especially with the Kingdom being a major global importer, other industry professionals such as Tuwaim say the truth behind rising prices is greed.
“We have noticed that there have been uncontrollable price hikes recently, especially following King Abdullah’s announcement of the financial benefit package. We are working to monitor the prices and have drawn up a nine-point initiative to control unjustified price rises,” Tuwaim told Arab News on Sunday.
“As well as that, we would like to send a message to the business owners who are hiking prices by 100 percent or even 200 percent that this behavior is unethical and goes against Islamic principles, as harming a person’s livelihood is among the worst things traders can do.”
Tuwaim added that even by worldwide standards, 15 percent is the highest rate businesses are allowed to mark up prices to turn in a profit.
He sad the CPA will not only help in stabilizing prices, but is keen on working with government officials to come up with strategies to identify traders who are hiking prices for no reason.
He added other strategies being developed to help stabilize and create a fair consumer market include initiatives to combat monopolies as well as the introduction of a data center responsible for comparing prices and studying their impact on the local consumer market.
“As part of the comparative price study, we will even go back to the country of origin where foodstuffs and goods are imported from and check prices against local retail prices to identify the companies and owners responsible for unjustified price increases,” Tuwaim said.
He added that although he is only a candidate for CPA’s next president, he hopes to be elected and help the association attract more members and become active in making a positive difference for consumers and Saudi society.
“I hope to be able to help the government combat price manipulation as well as regulate the local market so it is fair and stable," Tuwaim said.
He stated future initiatives the CPA will work on include an annual consumer report of local businesses as well as ratings for them to help consumers find the best prices and quality products, among other consumer awareness campaigns in cooperation with the Ministry of Commerce and Industry.
