Oman acts to stabilise prices

Oman acts to stabilise prices
Published: 31 August 2004

A price ceiling on cement has been fixed by the Omani government to prevent exploitation by retailers as demand rises.  The Ministry of Commerce and Industry has fixed the cement price at 1.5 riyals per bag outside Muscat and Dhofar from September.  "The decision was made after it was agreed with producers not to raise prices in response to the rise in demand for local cement," the ministry said.

Apparently, some retailers have been charging higher prices on the pretext of a long waiting period for delivery while production companies adhere to fixed prices.  The decision is meant to stabilise prices in local markets. Producers will be asked to stop supplying retailers who fail to adhere to the decision. Oman has also put restrictions on cement exports.