Fuel price cuts fail to give much-needed relief to hard-pressed Karachiites

KARACHI: As the government is trumpeting a “decline in inflation”, Ghulam Abbas, working in a milk shop, like many other citizens, does not appear upbeat about economic conditions saying that the government’s “official figures of sliding food inflation” are a far cry from market realities.

Even a price reduction of Rs37 per litre in diesel to Rs246.29 from July 16 till to date, has failed to translate into a relief in the shape of fares of buses, mini buses and coaches, he adds.

“The transport operators are enjoying a low transportation cost while commuters are still paying high prices,” he says.

“I have paid Rs2,500 to visit Rahim Yar Khan in an AC bus instead of Rs1,800 a few months back,” he further complains, adding that no relief is given in the rates of chicken, mutton, beef, pulses, rice, vegetables, etc.

People long for reprieve in prices of bread, naan, chicken, mutton, beef, rice, vegetables, milk and eggs

Mr Abbas says that no one can deny price fall in flour rates by the millers, thanks to the arrival of imported wheat, but a vast price difference still exists between the ex-mill rate and retail prices, which means retailers are not ready to share benefit of price reduction with consumers.

“I have purchased fine flour at Rs120 per kg while the mill rate is Rs96 per kg. No authority is ready to take notice of profiteering and huge price disparity,” he says.

Abbas adds that rates of naan and chapati have not shown any decline despite a huge price fall in various varieties of flour and only weight has been reduced.

He says that at a time when power and gas rates have ruined the monthly home budgets forcing consumers to make limited purchases as per their requirement, a strong government writ is needed in implementing and checking prices based on demand and supply gap and petroleum rates.

“The government intervention can help consumers overcome at least one burden of paying high prices of commodities.”

Transport rates

Petrol price has declined to Rs247.03 per litre from Rs275.

Over the last three months, Chingchi and extended rickshaws, who run their vehicles on petrol, have not shown any mercy for passengers even by Rs5 as they continue to charge Rs20-100 depending on the route distance.

The provincial government needs to take up this issue on a priority basis, says another commuter.

A transport tariff chart, signed by the local authority, emerges in private buses, mini buses and coaches after every price hike in diesel, but the transport operators and even the provincial authority pay no heed on downward trajectory in diesel prices.

Private three wheeler rickshaw owners, with no official tariff meter in their vehicles for decades, are also enjoying a field day by charging prices from passengers at their whims despite repeated cuts in petrol rates.

They charge at least Rs250-300 for four to five kilometres and Rs600-800 for a 10-12km journey depending on the time of the day.

Many owners run rickshaws on liquefied petroleum gas (LPG).

As per Sensitive Price Index (SPI) data, the 11.67 kg cylinder now costs Rs3,034-Rs3,151 as compared to Rs2,917-3,034 three months back. Rickshaw owners demand high fares due to LPG price hike.

Grocery prices

The SPI data further suggests that onion price has risen to Rs150-200 per kg from Rs100-140 in the last three months despite a drop in transportation cost.

White and red potato rates still hover at Rs100 and Rs120 per kg while tomato rates fluctuate between Rs150-200 per kg.

The price of gram pulse, mash, moong and masoor is Rs420-460, Rs520-560, Rs340-400 and Rs290-350 as compared to Rs320-360, Rs540-600, Rs300-350 and Rs300-360 per kg, respectively, three months back.

Sugar rates crawled down to Rs135-145 per kg from Rs145-160 per kg.

Fresh milk price has shot up to Rs220 per litre from Rs200, thus suggesting that the price set by the city government is no more effective or the authority has secretly given a go-ahead signal to retailers to charge Rs220 per litre.

Egg price also surged to Rs300-320 from Rs260-270 per dozen.

Poultry live bird is selling at Rs460-480 per kg as against Rs380-420 per kg three months back.

Average beef rate with bones and mutton are unchanged at Rs1,100-1,300 and Rs1,900-2,400 per kg.

Cooking oil (5 litre pack) slightly fell to Rs2,645 from Rs2,695 while 2.5 kg ghee pack price has risen to Rs1,335 from Rs1,310.

As per data of SPI, wheat flour bag 20kg prices are also pegged at Rs1,900-2,200 in the last three months.

Former chairman of Pakistan Flour Mills Association (PFMA) Aamir Abdullah says the ex-mill rate of flour No 2.5 is Rs90 per kg which was Rs160 last year while fine and super fine flour (maida) rates are Rs96 as against Rs170 per kilo last year.

He says that consumers have witnessed a big relief in flour rates due to import of 3.5 million tonnes by the private sector.

Amid huge price fall in flour varieties, consumers have yet to see any decline in prices of bakery and confectionary items despite the fact that flour varieties play a key role in these items.

Some branded bread makers have cut the price of medium sized bread by Rs10 which consumers see as is a peanut.

Basmati rice broken (average quality) and Irri 6/9 (Sindh and Punjab) prices remained unchanged at 260-280 and Rs160-200 per kg.

Some consumers complain that residential shop owners, who operate on low volumes, are rubbing salt into the wounds of consumers by charging Rs10-30 extra on products especially carrying no price tag and also on those products where price tag cannot be read easily.

However, the shopkeepers say that huge electricity bills are forcing them to indulge in this practice to cover up unbearable power bills.

Published in Dawn, October 14th, 2024