Report emphasizes need for enhanced oversight, control

KUWAIT: The Ministry of Commerce and Industry has received a report from an impartial entity revealing shortcomings in its inspection teams and price control measures, leading to inadequate results in addressing soaring prices. The report identifies two main issues contributing to this situation. Firstly, the insufficient number of teams and team members, coupled with irregular campaigns, allows shop owners to evade scrutiny easily.

Furthermore, the inconsistent application of penalties and instances of closed shops reopening without proper punishment contribute to the problem. Secondly, the current high prices in the local market are disproportionate to the actual rise in import costs. For example, if import costs increase by KD 1, importers are raising prices by KD 4.

The report emphasizes the need for enhanced oversight by regulatory authorities and calls for a more precise role in addressing these issues. While acknowledging the influence of global crises on prices, the report highlights the importance of addressing both minor and major problems. It warns that prices could escalate beyond expectations if the ministry’s efforts remain unchanged.

The report attributes the surge in prices to factors such as workers’ wages and cargo insurance, but notes exaggeration in these claims. Additionally, some goods, despite being abundant in Kuwait and not imported, have seen unwarranted price hikes. The report stresses the crucial role of supervisory entities in controlling and protecting consumer rights, advocating for accurate data-driven pricing rather than arbitrary decisions by business owners.