Saudi price rise investigation

Saudi price rise investigation
Published: 02 May 2011

The Saudi ministry will question the Kingdom’s factory representatives about why they have raised prices at a time when there is an estimated surplus of 9Mt of cement. Reasons for the price hike have so far been varied, with some producers claiming increased demand had forced them to start new lines of production.  Other cement factory representatives said that they had faced delays in trucks picking up and delivering cement to various parts of the country, which resulted in operational losses that had to be covered.

The ministry investigation comes on the back of a recent decision by the Ministry to set the price of a bag of cement at SR14. A ministry source said that inspectors would be sent out and any infringements would be punished accordingly the official added.