Monday , October 23 2017

MoCI panel okays hike of 75 consumable items – Fuel price increase will result in high rate of inflation: Al-Shaibani

KUWAIT CITY, Sept 27: The Committee for Price Monitoring and Followup formed by Ministry of Commerce and Industry has approved four major companies’ request to increase the prices of 75 consumable and food items, which will be sold in the local market based on the new prices, reports Al-Nahar daily.

The daily quoting a source explained the prices of all 75 items will be increased by approximately 10-15 percent, and they include detergents, tooth pastes, chocolate drinks, cake flour, white vinegar, apple, mineral water and many others.

He said the committee will approve other requests from some companies to increase the prices of items soon subsequent to activation of the new fuel prices since Sept 1.

He stated the step is in line with the decision of the Union of Consumer Cooperative Societies regarding the sale and pricing of some essential commodities. He explained the Ministry of Commerce and Industry has committees for financial and economic analysis concerning prices, and which allow all companies affected by the fuel hike to present proofs. However, each file will be treated on individual basis, as per appropriate decisions.

Meanwhile, economic expert Fawaz Al-Shaibani stressed that the increased fuel prices is leading to a gradual increase in the prices of other services and commodities but the government has been silent and doing nothing to confront this issue, reports Al-Seyassah daily.

He insisted that the increase in fuel prices will result in high rate of inflation, indicating that citizens regard the economic reform document as the government’s way of collecting their money especially when they see that the government has not taken any action to reduce the governmental expenditures and the exaggerated rewards granted to some consultants and senior officials.

Al-Shaibani revealed that the amount saved from increasing the prices in the last five years is about KD 10 billion, adding the government had announced that it will achieve 15 percent of its target by the end of 2016.

He stressed that it is better for the government to direct its efforts in creating real jobs and encouraging the private sector. Al- Shabani said the government has to convince the citizens about the feasibility of the economic reform document in order to ensure it does not fail, adding the government must be an example for the citizens in terms of rationalizing expenditures.

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