Major Effort to Curb Prices: 100,000 Imported Tires Flood Market, Easing Pressure on Algerian Transport Sector

✏️ BY: Dr. Hana Saada

Algiers, Algeria | September 26th, 2024 — In a strategic move aimed at stabilizing prices and addressing critical shortages, the Ministry of Trade and the Promotion of Exports has announced the injection of 100,000 imported tires into the national market. This action is part of a broader initiative to meet the growing demands of the transport sector.

The Ministry issued a statement on Tuesday detailing the distribution of this significant consignment, originating from the Aïn M’lila region. This first wave of imports marks the beginning of a larger campaign to supply the market with a total of 300,000 tires by the end of the year. The immediate release of the 100,000 units is expected to bring relief to transport operators who have struggled to source affordable tires, a situation that has led to widespread strikes in the public transportation sector.

Operational Oversight and Transparent Distribution

Supervision of this initial distribution was personally overseen by Mohamed Serdoune, the Regional Director of Commerce for Batna, alongside a team of senior officials and control agents from the Directorate of Commerce and Export Promotion in Aïn M’lila. During a field visit to the company’s warehouses tasked with the importation, Serdoune emphasized the importance of transparency in all commercial transactions related to the tire imports.

In a statement to the Algerian Press Service (APS), Serdoune underscored the Ministry’s commitment to ensuring the smooth and regulated flow of goods into the market. “This operation is essential in restoring balance to the market,” he stated, “and it forms part of a national strategy to combat illegal practices, such as speculation, which have led to unjustifiable price hikes and negatively impacted the availability of basic goods like tires.”

The Regional Director further noted that 17 additional operators from the Batna region are prepared to introduce similar large quantities of tires into the market over the coming weeks. This coordinated influx of tires is expected to significantly ease the current market strain and drive prices down to more reasonable levels, particularly in sectors reliant on road transport, where tire shortages have been a critical issue.

Relief for Transport Operators

The national market is poised to see a substantial inflow of tires in the next two months, with prices projected to drop “significantly” as a result. This outcome is particularly crucial for the country’s transport sector. Many transport operators, especially in the public and private bus and taxi services, have been forced to halt their operations due to the lack of available and affordable tires.

To maintain strict oversight, the Ministry has mandated that all tire distribution processes be rigorously monitored. From the moment the tires are received by importers to their final sale by retail merchants, every transaction will be scrutinized to prevent speculative practices and ensure fair pricing. “This heightened level of control will guarantee that no intermediary can artificially inflate prices or manipulate supply,” Serdoune explained, reinforcing the Ministry’s stance on protecting consumers from predatory pricing.

A National Strategy to Combat Speculation

The ongoing shortage of tires, which reached a critical point earlier this year, has been exacerbated by market speculation, where unscrupulous actors hoarded goods to drive up prices. This crisis prompted swift action from the Ministry, which had been closely monitoring the market and gathering data to inform its response. The decision to launch this large-scale importation effort was made to preempt further economic disruption and protect essential sectors such as transport, agriculture, and logistics.

According to sources close to the Ministry, cited by Echoroul website, the full-scale importation plan includes multiple phases. After the initial delivery of 100,000 tires, additional batches will be rolled out steadily throughout the remainder of 2024. This comprehensive approach, the Ministry asserts, will allow for a controlled and sustained increase in supply that aligns with market demand, preventing the recurrence of shortages and speculative behaviors that have undermined the market in recent months.

 

Translated from: https://www.echoroukonline.com/au-grand-bonheur-des-transporteurs-100-000-pneus-injectes-sur-le-marche

 

 

 

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