Sequel to CNG, POL prices, power tariff hike: commodity prices up by 20-25 percent

Prices of an entire range of essential commodities have increased by 20-25 percent after the recent increase in the prices of petroleum products and electricity, a survey carried out by Business Recorder showed.
According to traders at wholesale market, within a short span of time the government increased the prices of petroleum products by Rs 10 per litre, CNG by Rs 1.2 per kg and electricity by 27 paisa per unit, which has raised transport cost of goods significantly.
The survey noted that both retailers and wholesalers are passing on the burden of higher transportation cost to the end consumers. Traders said that the prices of the essential commodities like wheat flour, rice, sugar, pulses have registered an increase of Re 1 to Rs 1.50 per kg in the wholesale market in the past one week alone. "We are purchasing commodities at higher rates from the wholesalers and are forced to pass on the burden of higher transportation cost to already hard pressed consumers", said Mohasin Raja, a shopkeeper in Raja Bazaar.
He said that the current as well as the coming few months would prove tougher for consumers owing to two shocks given by the government--imposition of new taxes/levies, and hike in POL prices. He said that before the arrival of new budget a few cooking oil manufacturing companies, like Dalda, Sufi, Nestle, and cigarette manufacturers have started creating artificial shortage of their products to increase prices.
During the week, prices of potatoes, onions, tori, tinda, peas, beans, shimla mirch, Nido milk, loose milk increased by Rs 5, Rs 5, Rs 30, Rs 10, Rs 40, Rs 10, Rs 20, Rs 50, Rs 5 per kg against prices prevalent previous week. Potatoes were being sold at Rs 25 per kg, which jumped to Rs 30 per kg; onions were available at Rs 22 per kg, which now are being sold at Rs 30 per kg; tomatoes were being sold at Rs 30 per kg and now are being sold at Rs 35 per kg.
Similarly prices of live chicken and chicken meat have increased by Rs 10 per kg and Rs 20 per kg. Live chicken was available at Rs 110 per kg, while chicken meat was available at Rs 200 per kg, which this week are being sold at Rs 120 per kg and Rs 220 per kg respectively. Mutton and beef prices have increased by Rs 30 per kg. Last week mutton and beef were available at Rs 420 per kg and Rs 250 per kg, which at present are being sold at Rs 450 per kg and Rs 280 per kg.
During the week under review prices of garlic, lemon and ginger registered an increase of Rs 20 to Rs 30 per kg, last week garlic was being sold at Rs 160 per kg, lemon at Rs 120 and ginger at Rs 180 per kg, which this week past jumped to Rs 180 per kg, Rs 140 per kg and Rs 210 per kg. Peas last week were being sold at Rs 20 per kg, which this week is being sold at Rs 60 per kg.
People from different walks of life, lamented the escalation in prices and said that Pakistan was being ruled by international lenders and the government has turned a deaf ear to the miseries of the masses. However, prices of an entire range of pulses like gram, moong, malsh, masoor and lobia remained stable in the market. A customer, Shaheen Akhtar, told Business Recorder that the government since its formation has done nothing for the welfare of the common masses. She said that the common man has nothing to do with issues like the reopening of Bhutto case. Instead his main concern is managing two meals a day for his family.
She said the government, which has no choice but to raise POL price, can at least curtail its lavish spending so that the consumers would be motivated to do the same. Traders said that goods transporters had started demanding higher rates for lifting goods from wholesale markets to retail markets. President of Falahi Anjuman of Wholesale Vegetable Market Islamabad, Safer Awan, anticipated an impact of Rs 5 per kg on the retail prices in view of higher transportation cost of vegetables from farm to Subzi Mandi and then to other markets.
He said that increase in diesel price has pushed up the production cost of vegetables as tube-wells, tractors, trucks and trailers consume diesel in large quantities. Consumers are already facing problems owing to rising cost of living. Food inflation in July-February 2010-11 soared to 18.6 percent as compared to 11.4 percent in the same period of last fiscal year. The general consumer price index (CPI) rose to 14.3 percent in July-February 2010-11 as compared to 11.1 percent in the corresponding period of last fiscal year, according to Federal Bureau of Statistics.