JEDDAH: Citizens are complaining that restaurants and butchers are keeping prices high despite a decline in the prices of meat and chicken.
While monitoring agencies have remained silent on the issue, the Consumer Protection Agency (CPA) has called on authorities to monitor the market more closely and to take necessary actions against those raising prices.
CPA chief Abdul Rahman bin Yahya said the focus should not only be on the rising prices of rice and meat in restaurants but also on the rising prices of many food products over the past few years as well as their lack of correspondence with global prices and trends.
“We believe at the agency that the Saudi economy in general is based on free trade and free competition, but this does not mean leaving traders and shop owners to set prices as they wish without relying on economic and price indicators,” he said.
If authorities fail to monitor the market, unjustified price increases that harm the consumer can be expected, he added.
He noted that the Saudi market does not currently meet free trade policies in other countries, particularly Western countries, and is in need of correction.
He said a report from the Ministry of Economy and Planning for 2015 revealed the price of food products in the Kingdom had not followed the global fluctuations of food prices since 2008 either in terms of increases or decreases.
The CPA believes the Saudi market has engaged in unfair trade practices that benefit the trader rather than the consumer, especially when it comes to pricing. Price manipulations by importers and traders of rice were recently discovered by the Competition Council; the manipulations revealed the price of rice had been raised without cause for years. Twelve rulings have been issued against importers with total fines amounting to SR140 million.
To prevent such practices and ensure such rulings translate into tangible price decreases, the CPA is calling on the Ministry of Commerce and Investment, the Competition Council, and other authorities to take early measures in order to avoid price hikes. The ministry has successfully fought price manipulations and controlled prices of some items in the past such as cement and dairy products.
Necessary measures, according to the CPA, include monitoring both retail and wholesale prices and ensuring changes in prices are in line with changes in wholesale prices that will ensure the interest of the consumer. More penalties should also be applied to prevent commercial cover-up and illegal expats from dominating and manipulating commercial activities.
In turn, consumers should also be involved in addressing the problems by searching for alternative, lower-priced items, the CPA said. This will discourage competitors from unjustifiably raising prices, said Yahya, noting that unfortunately Saudi consumers fall short in this area.
Consumers can also partake in the establishment of consumer protection societies and associations that aim to ensure prices are set appropriately and meet the needs of members. The state has facilitated procedures for the establishment of such associations.
While monitoring agencies have remained silent on the issue, the Consumer Protection Agency (CPA) has called on authorities to monitor the market more closely and to take necessary actions against those raising prices.
CPA chief Abdul Rahman bin Yahya said the focus should not only be on the rising prices of rice and meat in restaurants but also on the rising prices of many food products over the past few years as well as their lack of correspondence with global prices and trends.
“We believe at the agency that the Saudi economy in general is based on free trade and free competition, but this does not mean leaving traders and shop owners to set prices as they wish without relying on economic and price indicators,” he said.
If authorities fail to monitor the market, unjustified price increases that harm the consumer can be expected, he added.
He noted that the Saudi market does not currently meet free trade policies in other countries, particularly Western countries, and is in need of correction.
He said a report from the Ministry of Economy and Planning for 2015 revealed the price of food products in the Kingdom had not followed the global fluctuations of food prices since 2008 either in terms of increases or decreases.
The CPA believes the Saudi market has engaged in unfair trade practices that benefit the trader rather than the consumer, especially when it comes to pricing. Price manipulations by importers and traders of rice were recently discovered by the Competition Council; the manipulations revealed the price of rice had been raised without cause for years. Twelve rulings have been issued against importers with total fines amounting to SR140 million.
To prevent such practices and ensure such rulings translate into tangible price decreases, the CPA is calling on the Ministry of Commerce and Investment, the Competition Council, and other authorities to take early measures in order to avoid price hikes. The ministry has successfully fought price manipulations and controlled prices of some items in the past such as cement and dairy products.
Necessary measures, according to the CPA, include monitoring both retail and wholesale prices and ensuring changes in prices are in line with changes in wholesale prices that will ensure the interest of the consumer. More penalties should also be applied to prevent commercial cover-up and illegal expats from dominating and manipulating commercial activities.
In turn, consumers should also be involved in addressing the problems by searching for alternative, lower-priced items, the CPA said. This will discourage competitors from unjustifiably raising prices, said Yahya, noting that unfortunately Saudi consumers fall short in this area.
Consumers can also partake in the establishment of consumer protection societies and associations that aim to ensure prices are set appropriately and meet the needs of members. The state has facilitated procedures for the establishment of such associations.
