June 8, 2024 | 5 days ago

Summer 2024: "No price increase for air conditioners will be tolerated," stated Zitouni.

During a working and inspection visit to Annaba, Tayeb Zitouni, Minister of Commerce and Export Promotion, was welcomed at the TCL Electronics Algeria factory. He took this opportunity to address the issue of air conditioners once again. In a discussion with the company's general manager, the minister firmly stated that no price increase for air conditioners will be tolerated, especially not during the summer season.

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Indeed, the minister emphasized the need to maintain sufficient stock and control prices. Tayeb Zitouni recalled the price increases from the previous year, where each temperature rise was followed by a price hike for air conditioners. He noted that producers claimed these increases were exceptional and not habitual. An air conditioner initially priced at 60,000 DA was sold for 120,000 DA, which was deemed unacceptable.


Furthermore, the minister announced a strategic change this year. Producers will need to fill out a form indicating the cost price, selling price, distribution network, and point of sale. These forms will also include the profit margin for each participant. The goal is to integrate all this information into a platform to monitor the prices applied. This method will involve all air conditioner producers.


Tayeb Zitouni explained that this approach aims to avoid any confusion. With clear data, it will be possible to identify those responsible in case of price increases. The minister also addressed the wali of Annaba, present during the visit, emphasizing that every actor in the supply chain, from producer to point of sale, must assume their responsibilities.


### New Strategy to Prevent Air Conditioner Price Increases


Additionally, the minister detailed the new strategy to the head of TCL Electronics. The producer must provide the air conditioner's price at the time of sale from the factory, along with the estimated margin. It's also necessary to identify distributors and know their margins, as well as those of wholesalers, up to the final retail price. This transparency will allow tracking the chain in case of price increases to identify the source.


In conclusion, by adopting this strategy, Tayeb Zitouni hopes to avoid any price surges this summer, as was the case last year. Many citizens had complained about the unexplained price hikes for air conditioners during the heatwaves. The minister is determined to put an end to these practices.

June 9, 2024 | algeria-logo