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KARACHI: Around six per cent increase in prices of petroleum products effective this month is set to put additional burden on the consumers owing to rising transportation cost of goods, grocery items and vegetables.
Depending on the load, transporters of commodities and vegetables ply both heavy and small vehicles on diesel, CNG and LPG for carrying goods. However, neither the transporters nor the traders are highly worried as consumers at the end always become the victim by paying the price either due to higher transportation or imposition of various taxes and duties.President Falahi Anjuman Wholesale Vegetable Market Super Highway, Haji Shahjehan projected a rise of Rs2 to Rs3 per kg in vegetable wholesale prices in the wake of increase in fuel rates.
By the time vegetables reach the city markets the consumers may have to pay at least 20-30 per cent more as retailers also recover their increased transportation expenses from the buyers' pockets.
He said the prices of almost of all the vegetables were going quite stable during the November-February period due to improved supplies from the upcountry, but now the situation would reverse.
Growers were already perturbed owing to rising cost of production on account of increase in urea, DAP and pesticides prices.
The government should curtail its own expenses, lavish spending and also reduce taxes on petroleum products so at least the consumers could get some relief, he said.
The January's CPI inflation stood at 10.1 per cent as against 9.75 per cent recorded in the pervious month. During 7MFY12, average inflation clocked at 10.8 per cent versus 14.3 per cent in the same period last year.
The multinational and local food product companies, which have been increasing prices on their own due to the government's apathy, get another reason to pass on the POL price impact to the end users.
Karachi Wholesalers Grocers Association (KWGA) Chairman Anis Majeed estimated Re1 to Rs2 per kg increase in items like rice, pulses, sugar, spices, wheat, etc.
"When ever diesel price shoots up by Rs4 to Rs5 per litre it makes a straight impact of Re1 to Rs2 per kg at wholesale price of various food items," he explained.
The wholesale market, which is already going slow, may not see any instant impact of POL price hike but it will surely make products costlier as many transporters (taking goods from upcountry and factory to wholesale markets) already started demanding higher transportation charges from Wednesday.
Industry slams decision
Trade and industry while rejecting the increase in prices of POL and new tax imposed on CNG said it would open another floodgate of price spiral in food items.
Chairman Korangi Association of Trade and Industry (KATI) Ehteshamuddin said the government had broken the backbone of the industry and the masses by increasing POL and gas prices besides raising electricity tariff frequently instead of lower- ing its lavish spending on non-developmental expenditures.
He said the prime minister had recently said that it was Ogra which made decisions about POL prices, but the Ogra has clarified that its role is only to recommend change in price and the government decides to increase petroleum or gas prices.
He strongly urged the government to immediately reverse its decision of POL price hike and surcharge on CNG and try to find out other ways of boosting revenues.
