UAE: New policy approved to control price increase of basic goods
The UAE’s Ministry of Economy (MoE) has approved a a new policy regarding the pricing mechanism for basic consumer goods in the country.
Under this mechanism, these consumer goods are divided into two main groups.
The first group consists of more than 11,000 commodities including fresh and dry milk, fresh chicken and eggs, bread, flour, sugar, salt, rice and legumes, cooking oil, mineral water and others items, according to news agency WAM. Among items in this group, prior approval is required by the supplier if they desire to raise its price due to the high import costs. The prior approval must be obtained via the Ministry of Economy website through a specifically designated system for this service. The applicants must submit all evidence and data related to the increase in costs and their direct causes. The ministry then will decide on the approval and the percentage of the approved price hike.
The second group consists of commodities such as biscuits, chocolates, confectionaries, some cheese products, frozen food, juices and ice cream, tea, coffee, cocoa and its products, wheat, oats, potato chips, household cleaning materials and tools. Among this second category, the MoE clarified that there is no need for prior approval if the supplier wishes to increase its prices and these products are subject to supply and demand variations. It explained that these goods were chosen based on their abundance, high price competitiveness, and a large number of suppliers of these goods to ensure the existence of multiple alternatives in the country.
The ministry added that price control is an ongoing process, and any unjustified price hike is a violation, which exposes its owner to legal consequences.
