Algeria: “Executive decree in the offing to keep tight reign on prices of basic products and ward off market monopoly by venal lobbies”
The Trade ministerial department has announced the adoption shortly by the government of an executive decree aimed at keeping a tight reign on the prices of staple commodities including sugar and cooking oil and strictly setting the profit margins for all those involved in the production, the distribution and the commercialization of these basic consumer products.
- “The first stage would fall in line with the projected executive decree that would put a ceiling on cooking oil prices at 600 dinars for 5 litres, and 90 dinars per kilogram of sugar,” said Trade Minister Mustapha Benbada.
- In a statement to the press, the Trade minister pointed out that his department was in the process of developing a legal framework to control the rising cost of basic commodities. The proposed measures would enable the government to dictate the prices of some staple commodities.
- The proposed new regulatory measures include the authority to set profit margins for traders as well as compensation for merchants in case their costs exceed the set price for consumer goods.
- Mr Benbada said that this procedure fell within the implementation of the laws on competitiveness and trade practices issued in 2008, fingering to the possibility that authorities could enforce price ceilings in case of a “political decision”.
- Prices of sugar and oil rose 23% in January, as compared to last December, according to the Trade ministry. The government held some local producers responsible for the abrupt price hike, branding it as “non-natural and artificial”.
- “The government decided to expand the system of price controls to include agricultural products as well as potatoes, through the identification of surplus products and facing the potential scarcity of products and managing it before it turns into a crisis,” Agriculture Minister Rachid Benaissa said earlier this week.
- Mr Benaissa added, “The state will intervene whenever there is market instability through the storage and control and working out relevant procedures beforehand to maintain the revenues of farmers and ensure price stability.”
- The Algerian authorities are now intent on “placating social tension” by taking swift action to establish a ceiling on prices for products consumed by large segments of the population.