Font Size

- Aa +

Wed 17 Aug 2011 11:25 AM

Font Size

- Aa +

Oman moves to curb commodity price hikes

Decision follows move by the UAE to freeze cost of foodstuffs at retail outlets

Oman moves to curb commodity price hikes
Suppliers will have to justify price hikes in commodities and services, Omans consumer protection authority said

Oman's government will ban increases in the prices of
commodities and services unless suppliers can justify the hikes, the state news
agency reported.

The decision implies that the supplier may not raise the
price of a commodity or service unless he gets approval from the Public
Authority for Consumer Protection (PACP), ONA said, quoting PACP's chairman
Said al-Kaabi.

It did not elaborate on when the decision will take effect.

The new law would allow the supplier to submit an
application to increase the price of a commodity or service to the PACP, but
they will also be required to give reasons to justify the price hike.

Annual inflation in the Gulf Arab sultanate slowed to 4 percent
in June from a two-year high of 4.4 percent in May.

Oman's measure follows steps by the UAE to combat rising
global commodity prices by fixing the cost of about 400 foodstuffs and
household products at 70 outlets this year.

The small non-OPEC oil producer, which faced several public
protests this year demanding more jobs and an end to corruption, announced
$2.6bn in spending in April and promised to create 50,000 new jobs, among other
measures.

A senior central bank official said this week that Oman's
economy was expected to grow by 5 percent in real terms this year and inflation
was likely to remain between 4 and 5 percent.

Data on Tuesday showed Oman's economy grew by a faster 15.3
percent in the first three months of this year thanks to robust oil prices.

Christopher 8 years ago

Unfortunately, bad numbers in Oman get never published. Oman becomes very expensive leading to more corruption between citizens. I hope HH Sultan can read this message.