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Steep Hike in Cooking Gas Prices Rattles Ajman Residents, Bakeries (23 December 2009)

The Ajman Municipality and Planning Directorate has received complaints from a large number of residents about a steep hike in prices of cooking gas cylinders in the last one month.

Businesses like bakeries that use gas cylinders extensively are among the most affected and said they hope the municipality would take action against the distribution companies. They said the gas cylinders should be sold at unified prices.

Khalfan Al Teraishi, owner of a bakery making traditional Egyptian bread, said he had to increase the price of a packet containing five pieces of bread by 25 fils, or reduce the number of
pieces to three.

"Increasing the prices of gas cylinders each month is unjustified," Al Teraishi said.

Another bakery owner in Ajman, who asked not to be named, said he was struggling to make a profit from his business anymore.

"The prices of raw materials used in the baking process have gone up compared to last year. Besides, we are also witnessing a monthly increase in the prices of gas cylinders," he said.

"The price of big cylinder (of 44kg) was Dh95 two months back and it rose to Dh120 last month. Two days back, I bought a gas cylinder and I was shocked to find that the price has gone up to Dh200."

He said action should be taken against the gas distributers.

"The authorities concerned must seriously consider the basic rights of consumers and enforce reasonable and unified prices," he said.

Osama Ahmed, a resident here, said he has been shocked by the increase in prices of gas cylinders every month.

"The price of medium gas cylinders of 22kg has risen from Dh75 last month to Dh95 now. We were not given prior notification about the price hike," Ahmed said.

"The increase in the prices of gas cylinders affects the prices of other products and will eventually be a heavy financial burden on consumers."

Ahmed said he hoped that the civic body would seriously look into the matter and announce unified prices.

Yehia Ibrahim Al Reyaysa, Assistant Director of the municipality, said the civic body held a meeting with owners of gas companies and distributors in Ajman in August this year and they
were ordered to unify the prices of the cylinders.

"Following this meeting, the prices remained stable. But the increase up to 30 per cent now is unjustified and will lead to increase in the prices of
other products."

In response to the complaints, the municipality has contacted gas companies and distribution firms to find out their reasons to increase the prices. "The whole issue will be resolved in a way that meets the demands of the consumers and traders," he said.



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