Jordan- Protecting the CitizensBy Fahed Khitan

(MENAFN- Alghad Newspaper)

The indirect and subsequent mark-ups caused by the direct hikes in prices are far more consequential for citizens than the hikes themselves!

Floating bread prices and cashing subsidies directly to eligible beneficiaries, in theory, could help mitigate the negative implications of suspending subsidies on bread, if any. However, it will probably drive a mark-up on food prices at restaurants, especially popular ones, where bread happens to be a basic component of served meals.

Yesterday, the association of popular restaurants announced that the price of humus, falafel, and other wraps and meals will automatically increase with the bread prices floated.

Some days back, the association of foodstuff merchants also warned against the increase in prices, that it will deplete purchasing powers. Especially now as the government's intentions to impose higher sales tax on packaged foodstuff prices are confirmed.

The foodstuff sector is already suffering, and at this point, they're more concerned with themselves and their business than they are with the citizens. Tax hikes will not help their situation at all.

Even though the price hikes are not yet announced, numerous sectors have begun prepping the people for it, promising simultaneous price mark-ups as soon as the decision is made!

All this fuss is just frustrating.

It is true that several commodities and services will in fact see price hikes as it is with the beginning of 2018, due to various economic and tax policies, which will reflect on prices. But, speaking of bread and sandwiches, most of the bread used in sandwiches are already unsubsidised. In the most expensive malls in Amman, a piece of 'Hamam bread is sold at ten piasters, in most other bakeries and shops, it is sold at five piasters, tops. Hamam is not subsidised. So why raise prices?

Dozens of 'popular restaurants in Amman particularly sell their sandwiches at prices close to that of a filling meal at one of the 'posh restaurants.

My point is that the absence of control measures, coupled with greed, can be far more devastating than the direct increase in the prices of goods and services.

Meanwhile, in these regards, the government's failures are second to none.

The respective parties have allowed for the traders and businessmen to rob the citizens in broad daylight, under pretences of the free market. It is far too obvious, the difference in prices from one place to another.

At a mall oranges are sold at one dinar per kilogramme, while just a few hundred metres away, they're sold at 60 piasters.

Oranges or not, this is the case for every sector, almost.

These variances in the price-range of the same product or service within the same districts even, are caused by the absence of monitory measures. Merchants seem to be free to price their products as they please. This isn't free market. This is chaos coming out of the pockets of the citizen.

Just like the Prime Minister met with the representatives of the telecommunications and industrial sectors, I suggest he meets with a representative sample of the citizens and their families.

He should listen first-hand to the people's complaint and their suffering with the market, because they're the ones paying for it eventually.

The government's main concern should be: how do we protect citizens from the coming price hikes?!

Businessmen don't care much about the prices, it's the citizens' who pay the price.

This article is an edited translation of the Arabic version, published by AlGhad.

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