Omanis are hard hit by rising food costs

Some shops have hiked prices by up to 20 per cent

MUSCAT // Food prices in Oman rise every year at the start of Ramadan, but this year shoppers have been particularly hard hit as prices of most items were raised by as much as 20 per cent – more than the usual 5 to 10 per cent.

As shops defied a warning from the government last week to not increase food prices, shoppers had to dig deep.

“These greedy retailers are taking advantage of the holy month knowing that people cannot cut down on their food shopping,” said Ali Al Kaabi, a retired food inspector who used to work for the Muscat municipality.

“I see prices have gone up to 20 per cent in almost everything edible. It is shameful.”

Oman’s Al Nakheel supermarket chain was selling a kilogram of fresh kingfish for 4.95 rials (Dh47.23) yesterday, up from 4.1 rials a week ago, while a 20kg bag of Indian basmati rice that was previously being sold at 13.5 rials had risen to 16.35 rials.

“We are already struggling with life and now these retailers have increased their prices for food,” said Qais Al Sinawi, a 27-year old earning the minimum wage of 325 rials (Dh3,102) a month.

“We have high utility bills to pay when one considers it is already hot, and the food increase does not help our situation at all.”

According to government statistics from last year, about 15 per cent of the 223,000 Omanis working in the private sector earn the minimum wage.

A manager of one of the biggest supermarket chains in the country blamed the price rises on increased charges from suppliers as a result of delivery costs going up ahead of, and during, Ramadan.

“For example, our fruit and vegetable suppliers say they pay more for delivery to our supermarkets,” said the manager of the Muscat-based chain.

“Same thing goes for fish, meat, flour and rice. So we are forced to raise the price because of the distribution cost that is passed on to us retailers.”

Food distribution companies acknowledge that they charge clients more during the Ramadan period and said it was because they had to pay staff overtime if they worked longer than Ramadan hours.

Usually they raise charges by around 5 per cent but this year have raised them by 10 per cent. It came after the government removed energy subsidies in January last year.

But, the distribution companies say, retailers are still increasing food prices more than they need to.

“Retailers take advantage of the situation by doubling it,” said Hamood Al Ghatry, a supervisor for Ghadeer Distributions.

Mr Al Kaabi agreed that large retailers used distribution costs as an excuse to raise food prices unnecessarily high. He also questioned why the prices of non-perishable food items should rise.

“I know that big chains of supermarkets have large stocks to last at least three months,” he said. “They use higher transportation fees during Ramadan to exploit shoppers. They don’t stock up on a monthly basis but on a quarterly basis.”