Price regulatory body pursues restaurants for unfair prices

RIYADH: The Council of Competition, the price and competition regulatory body in the Kingdom, has launched the procedure for filing lawsuits against restaurants found charging more for non-vegetarian meals, especially kabsa, despite the rates of raw material going down.

A number of restaurants in the capital either want to increase the prices or continue with the old price, which had been increased following a rise in the prices of rice, chicken, meat and other agricultural goods, the council informed local media.
The Ministry of Commerce and Investment (MCI) confirmed that prices are stable and the rates of certain goods are expected to decrease by 26 percent.
The council revealed in its annual report for 2015 that some companies and establishments (restaurants) in Riyadh are raising the prices of their meals.
This might indicate that they have prior coordination or agreement between them.
The council has issued a directive to investigate and gather evidence to find out if restaurants that sell chicken and rice in Riyadh and other areas violate the norms for competition.
The council approved the initiation of criminal lawsuit procedures against the establishments that were found to be violating the rules and regulations of the competition system, before the review and ruling committee.
The MCI had confirmed at the beginning of this year that the Kingdom’s markets have abundant goods and foodstuff, and stressed that prices are stable with some products tending to witness a decrease in prices up to 26 percent.
These goods include rice, milk powder, sugar, cheese, vegetable oil, frozen chicken and frozen meats, it said.
The prices of these products witnessed a decrease in January in comparison with the same period last year because of the varying trademarks and brands, as well as their different origins.
The markets have a lot of local agricultural products because the sector wasn’t affected by weather conditions.
The MCI stated that it was continuously monitoring prices of products in the local market and making sure that there are no unjustified increases in the prices. It is comparing the prices in the Kingdom with those in other GCC and neighboring countries.