Give data, water companies told

Abu Dhabi: Residents on Monday praised the Ministry of Economy's rejection of mineral water companies' request to increase prices of bottled drinking water.

The Ministry of Economy's Consumer Protection Unit yesterday said it had rejected mineral water companies' request to increase prices of locally bottled drinking water.

In a statement, Dr Hashim Al Nuaimi, Director of the ministry's Consumer Protection Unit, said the ministry has asked water bottling companies and factories to provide the ministry with detailed data about their budgets and production costs to assess the demand for a price hike.

"This issue is very important because it is related to the incomes and general lives of the consumers so that the Ministry of Economy, as always, is keen to take necessary action to protect the consumers and stabilise the markets in the UAE in general," said Al Nuaimi.

"The Consumer Production Unit will forward the results of the study on the demand for price hike to the Supreme Committee of Consumer Protection to take appropriate decision on the issue. The prices will be monitored in the market and those who violate the rules will be penalised," Al Nuaimi said.

When reached by Gulf News, Al Nuaimi declined to say how many companies had sought increases in water prices.

However, an executive at Oasis Water, a key player in the bottled water business, said that his company had sought an increase in the price of five-gallon water bottles that are delivered to homes.

Make nominal increase

"We wanted the prices to be increased from Dh7 to Dh9 per container," said the Oasis executive.

Nestle Water said it has no immediate plans to raise the price of five-gallon jars. It currently sells the bottles to homes at Dh9 in Dubai and Abu Dhabi.

"The last time we increased prices was in late 2006. We haven't requested a price increase," said Ahmad Elleissy, Deputy General Manager at Nestle Water in Dubai. "We follow all the government procedures," he added.

UAE national Mohammad Fardan, (27), an employee of Abu Dhabi government, said the government's decision was timely as the proposed hike was too much.

"If water companies suffer losses due to increase in production cost, they have to make a nominal increase to cover it.

"But a Dh2 increase for a five gallon bottle is too much. It may be affordable for government employees like me, but a majority of the people cannot cope with it," said Fardan.

Jalpa Dave, an Indian banking professional, said people are deprived of savings due to ever increasing prices.

"If the salaries are not increased, nobody can save anything. I appreciate the government's decision, because otherwise the situation would have become worse," said Dave.

Have your say
Has your water vendor hiked the price? Will you pay the increase or file a complaint? Tell us by using the comments form below.

The tremendous increase in the cost of living in Dubai has already made the people disappointed. The amount of saving has become 40% less than 2 years ago. We cannot afford such a drastic rise in the price of drinking water.
Anil
Dubai,UAE
Posted: July 31, 2007, 09:50

It was shocking to note last week when Oasis had delivered the bottles along with a letter stating that their prices have increased from Dhs7 to Dhs9. This is totally unfair. How are people going to afford this hike? As it is, our salaries are more or less the same and prices of consumer essential commodities are rising. The Ministry ought to have a look into their price hikes.
Nevin
Khorfakkan,UAE
Posted: July 31, 2007, 09:48

We use Oasis water supplies. A few weeks back the delivery boy gave us a letter indicating the increase in water hike w/f from 1st Aug. Complaining would go to deaf ears. We complained about increased in rents, we complained about salik. Nothing happened. Our complaints will go unheard.. So why waste our breath shouting.
Evon
Dubai,UAE
Posted: July 31, 2007, 08:52

We really welcome for the decision from the Ministry and we hope they will do their best to reduce the price hike of other commodities also.
Sheikh
Dubai,UAE
Posted: July 31, 2007, 08:45

Oasis has already sent circular addressing the price hike last week itself. How come they raise the price without the approval of Ministry? Timely coverage by Gulf News highlighted the issue. Thanks.
Ebrahim
Abu Dhabi,UAE
Posted: July 31, 2007, 08:20

Water is one of the basic necessities in life. Keeping that in mind, the Government intervention and correction of price is highly welcome.
Sujith
Dubai,UAE
Posted: July 31, 2007, 07:50

Why is it that Nestle Water can be permitted to charge Dh9 per 5 gallon jar and not the other players? Is this not unfair? I feel the ministry should either ask Nestle to reduce its price or permit the price hike. There is no point in highlighting the fact the Nestle does not intend to increase prices when they already are expensive!
Steve Adam
Dubai,UAE
Posted: July 31, 2007, 04:11