Generators prices in the local market have gone up to Rs 10,000 in the wake of rising demand and delay in the release of stuck up containers at Karachi port, importers and traders said.
They said continuous electricity breakdowns during rains in the city had pushed the generators sale and during the last few days, there was a huge demand in the local market.
Another factor which caused escalation in prices of the generators was that the customs officials did not release the imported generators' consignments, stuck up at Karachi port for the last three weeks on custom duty issue, they said. They said people used petrol generators, prices of which had gone up by Rs 2,000-10,000 per unit.
According to market reports, smallest petrol generator from China of 0.650 KV capacity, which was selling at Rs 3,500, is now available for Rs 5, 500 per unit. The price of Chinese-made one KV petrol generator has been raised from Rs 5,000-5,500 per unit to Rs 8,000-8,500 per unit.
In addition, two KV capacity Chinese petrol generator prices is selling at between Rs 12,000 to Rs 12, 500 per unit in the domestic market, depicting an increase of Rs 4,000 per unit during the last one week.
Similarly, the prices of five KV Chinese petrol generators have been increased by Rs 10,000 per unit. After this upsurge, its prices have touched new peak of Rs 35,000-40,000 per unit previously selling at Rs 25,000-30,000 per unit in the retail market.
President of Pakistan Machinery Merchants Group (PMMG) Khurram Sehgal said that despite the tremendous demand of generators, supply was still not restore to the local market, as the customs officials were using delaying tactics for releasing around 100 stuck up generator containers.
He said that the customs officials were not implementing measures, including relaxation in duty on import of generators, announced by Minister of State for Finance Umer Ayub in his budget speech. They (customs) had raised the valuation of imported generators by 100 percent despite the fact the government announced duty relaxation, he said.
"We have been informed by the Collector of Customs that the stuck up containers would be released on Thursday, but the Customs had been releasing these consignments on higher valuation, it was, therefore, not possible for the importers to decrease the generators prices after paying enhanced taxes," Khurram added.
He feared that if the customs did not solve valuation dispute, the generator prices in the domestic market would further shoot up. He said the customs had orders to free only petrol generators, while the diesel generator consignments were still detained.