Business | Markets
UAE Ministry of Economy urges retailers to cut prices
The Ministry of Economy has urged retailers to reduce the prices of commodities in view of the global downtrend in transportation and raw materials costs.
- By Cleofe Maceda, Staff Reporter
- Published: 00:24 November 4, 2008
Dubai: The Ministry of Economy has urged retailers to reduce the prices of commodities in view of the global downtrend in transportation and raw materials costs.
Dr Hashim Al Nuaimi, director of the ministry's consumer protection department, met with representatives of major retail outlets last Thursday to discuss how local traders can manage grocery prices.
However, while global oil prices have fallen, oil retailers in the UAE are not committing to any price cuts anytime soon without any directive from the government.
If local oil prices are reduced, analyst Kate Dourian said petrol retailers will continue to lose money as retail prices are already below the global rates.
"Retailers will still be losing money, because the rates at which they're selling oil are still below the international values, but their losses will not be as huge as when oil prices were very high," Dourian told Gulf News.
At the supermarkets, prices of some products may remain high despite falling global prices as retailers still need to replenish the old stocks that were purchased at higher prices. Lower prices are likely to be reflected in new stocks.
Nando Kumar of LuLu Hypermarkets, who attended the meeting, said they are negotiating with their local and foreign suppliers, as well as manufacturers, to implement price cuts.
If a favourable feedback is reached, Kumar said the prices of food and essential commodities at their outlets may be reduced by the end of the month.
Kamal Vachani, who heads the Al Maya Group, said they are regularly reviewing their prices.
"I'm not aware of the Ministry of Economy's call, but we are already selling our items at low and no margin at all. We have just reduced the prices of some goods. We're giving the best prices to customers," Vachani told Gulf News.
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