Huge surge in POL prices likely to bring pre-Ramazan hike

Saturday July 04, 2009

KARACHI: Pre-Ramazan rise in prices of essential commodities is expected to take place much earlier than usual because of the gigantic surge in prices of petroleum products. Prices of fruits and vegetables have already surged in the range of Rs 10 to 15 per kg in the wholesale market, according to fruit and vegetable dealers in new Sabzi Mandi.

Apprehensive traders said that major items will be pulses and wheat flour whose soaring rates would in turn increase the cost of living, particularly for the poor, much before the advent of Ramazan because of the government's 'stiff' petroleum policy. "Demand of essential items goes on increasing before Ramazan, particularly of pulses, wheat flour, and related by-products," traders said.

Inland transportation cost has immediately skyrocketed with petroleum price increase due to which sugar rate has so far mounted to Rs 4320 per 100 kg sack, from Rs 4260 in the mass market, they added. They said that 50 paisa per kg of sugar has increased immediately which is likely to reach Re 1 in the next few days in the wholesale market. Retail price of sugar is Rs 45 per kg.

Similarly, wheat flour price has posted Rs 30 increase per 100 kg bag until now, which is available at Rs 2250, according to traders, while millers say that increase of Re 1 per kg in wheat flour price has so far taken place in some parts of the city.

The Chairman of Pakistan Flour Mills Association (PFMA), Johar Ali Qandhari, said that increase of Rs 30 to Rs 40 per 100 kg sack of wheat grain has occurred immediately because of petroleum prices surge. To mills now wheat grain is available at Rs 2425 per 100 kg.

Wheat shortage has also occurred because of disagreement between millers and transporters over new cartage rates. However, largely they have now been agreed upon, he said. He pointed out that electricity crisis is another prominent issue which is likely to give rise to the cost of wheat flour production when the government removes subsidy. There is also a fear of a dangerous surge in flour prices.

Qandhari urged the government to set up a permanent price fixation system to protect the consumers' rights in such chaotic situation, and said that everyone would try to multiply profit on the pretext of oil price hike. Wheat flour in retail market is being sold as [fine quality] at Rs 32 per kg, [2.5 no flour] at Rs 30 per kg, [flour chaki] at Rs 32 per kg.

Impact of petroleum prices will come in a week's period, said General Secretary of Karachi Retail Grocers Group, Fareed Qureshi. Sugar price in the wholesale market has immediately mounted by 50 paisa per kg, said chairman of Karachi Wholesalers Grocers Association, Anis Majeed, adding that increase in transportation cost would soon pass on to end-consumers.

Increase of Re 1 per kg in prices of all varieties of pulses is also going to occur shortly, which he termed "the direct and immediate impact" of the recent rise in petroleum prices. He said that the supply of pulses to Karachi would be smooth for the Ramazan to meet the demand.

He condemned the price rise of petroleum products, saying that it would cripple the consumers' purchasing power. Rs 57/litre of petrol is also high for common people, Anis Majeed said. Pulses prices have already surged in July as compared to June this year. Prices of mash washed [I and II] went up to Rs 95 per kg from Rs 77 and Rs 87 per kg from Rs 72 respectively.

Prices of mash peel black mounted to Rs 66 per kg from Rs 57, Kabuli chana white [I and II] to Rs 92 per kg from Rs 84 and Rs 66 from Rs 60 respectively. Price of Mong washed [I and II] to Rs 60 from Rs 53 and Rs 50 from Rs 47 per kg respectively. Prices of moong whole-I increased to Rs 97 per kg from Rs 96 and Mash whole Rs 75 from 73 correspondingly.


(BRecorder)