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Trade Ministry wants explanation for price increase in restaurants
HAZIM AL-MUTAIRI
Published in The Saudi Gazette on 16 - 04 - 2011

RIYADH: The Ministry of Trade and Industry has asked restaurants serving traditional meals to provide evidence justifying their recent rise in prices.
Sources at the ministry told Okaz/Saudi Gazette that the ministry would “not tolerate” the sudden price increases that have occurred over the last week and which mostly “affect members of the public with limited income”.
The ministry has reportedly asked restaurant owners to provide documents proving their claims that the cost of certain food products has gone up or face penalties.
“The ministry will not hesitate for a second to punish persons responsible,” the sources said, adding that the ministry has a dedicated team of staff to respond to reports and complaints, and who “take swift action to check on any other rises”.
Restaurants in Riyadh serving traditional meals have raised their prices by 10 percent, some by cutting down on the size of meals, moves which owners justify by citing an increase in the price of meat and other costs.
“Meat prices have gone up, and so have rents and the cost of labor,” said one restaurant owner.
“Reducing the size of meals is a way of avoiding arguments with customers,” he added.
The Ministry of Trade has been on alert for price rises across the Kingdom's markets since Royal Orders were announced last month granting two extra monthly salaries for public sector staff.
Only a week ago the ministry issued a stern reminder to shops and businesses of their “national responsibility” and to refrain from raising prices “without good reason”.
Minister Abdullah Zainal instructed in a telegram to the Riyadh Chamber of Commerce and Industry that any price changes be pursued to “prevent any possible price manipulations in the near future”.
The ministry emphasized its “seriousness in this regard” and added that “the authorities in question must fulfill their responsibilities and traders must not raise prices without good cause”.


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