DOHA: As global oil prices have been falling for over seven to eight months, many people are wondering why they are not driving down the prices of goods and services.
Since transport costs are a major component of a commodity or service’s pricing, they should actually be dropping due to tumbling crude rates.
But that doesn’t seem to be happening at least in Qatar’s context, say consumers.
Retailers argue that prices continue to be high here due to rising shop rents.
Businessman Ali Hassan Al Khalaf (pictured) told local Arabic daily Al Arab in comments published recently that Qatar needed more retail and wholesale outlets.
Also needed are more places for auctions of fruits, vegetables and fish, said Al Khalaf, a former bureaucrat.
Decentralising auctions (they are carried out only at the central markets) would considerably help reduce prices, he suggested.
The ex-director of commercial affairs at the Ministry of Economy and Commerce said there was the need for more retailers and wholesalers as well across the country.
There are huge opportunities for that, and if there are more retailers and wholesalers, that would also contribute to price reduction.
A fish trader, Abdulrahman Mohamed, said there is always high demand for fish and sometimes the weather doesn’t allow fishing in the high seas, which leads to shortages.
“Naturally, when there are shortages amid soaring demand, the prices will shoot up. That’s what we witness in Qatar on occasions,” he said.
Abdulaziz Al Sulaiti, a citizen, wondered why commodities are still expensive in Qatar when oil prices have been falling for more than six months.
According to Mohamed Al Emadi, another citizen, in a situation where rents were high the consumer rights watchdog of the ministry (Consumer Protection Department) could not be expected to control inflation.
He said things were cheaper in Souq Waqif than big commercial centres as shop rents were quite moderate in the souq.
Al Emadi said price differentials between Souq Waqif and major commercial complexes were quite high.
“Something available for QR15 at Souq Waqif, you would get it for at least QR25 at a shopping centre,” he said.
Some retailers told the daily that in areas where shop rents were low, commodities were relatively cheaper than in localities where the rents were high.
The Peninsula
DOHA: A citizen wondered why inspectors from the Consumer Protection Department (CPD) did not raid neighbourhood stores and targeted only the bigger outlets and shopping complexes.
Mohamed Al Yami told local Arabic daily Al Arab in remarks published yesterday that neighbourhood stores, commonly known as ‘Baqalas’, are more exploitative and manipulate prices.
“Well, they may charge 10 to 15 percent extra. That’s acceptable but many tend to overdo when it comes to pricing,” Al Yami said.
He wondered why CPD inspectors didn’t visit these outlets that are everywhere.
“Commercial centres are better than the Baqalas.”
He said not everyone in Qatar is rich. A majority of people struggle to help ends meet as their salaries are low, said Al Yami.
the peninsula
