November 26, 2002	Tuesday	Ramazan 20, 1423

ISLAMABAD, Nov 25: The Sensitive Price Indicator registered a decrease of 0.95 per cent during the week ending November 21, as compared to previous week, according to the weekly price data released by the Federal Bureau of Statistics here on Monday.

The decline was attributable mainly to the downward revision in prices of petroleum fuels by the Oil Companies Advisory Committee (OCAC). These prices had been pegged up for unexplained reasons even during the periods in 2001 and early 2002, when the world prices of crude were going down.

Interestingly, the OCAC’s decision has brought the rate of petrol down to Rs32.32 per litre, which is still 9.52 per cent higher than the price prevailing during the corresponding week of 2001.

Even the reduced price of diesel (Rs21.40 per litre) is 42.47 per cent higher than during the same period of previous year.

As a result of the OCAC’s decision, the prices of petrol have been lowered by 8.52%, diesel by 1.86% and CNG by 0.12% only. Their prices have presumably been reduced in the face of sharp drop in the consumption of petrol, resulting in a crisis-like situation, particularly for the owners of petrol pumps.

The largest beneficiaries of the reversal of petrol prices spiral by the OCAC were the highest income households (with monthly incomes above Rs12,000). They saw a drop of 1.22% in SPI. Next highest decrease (0.61%) was in respect of households with monthly incomes ranging between Rs5,001 and Rs12,000. For households with lowest incomes up to Rs3,000, the SPI was down by 0.56% and for those in come bracket Rs3,000-5,000 by 0.55%.

Consequently, the SPI index during the period under review moved down to 106.90, as compared to 107.92 for the previous week. As compared to corresponding period of previous year, the SPI soared by 2.90%.

The availability of relatively cheaper petroleum fuels, combined with seasonal factors, had its cascading effect on many other essential items, as seen from the accompanying table that showed decrease in prices of 16 items included in the 51-item SPI basket, as follows:

Onions (11.97%), potatoes (10.21%), petrol (8.52%), chicken farm (3.91%), garlic (2.54%), sugar (1.89%), kerosene (1.41%), gur (1.18%), mash pulse (0.81%), moong pulse washed (0.60%), wheat flour average quality (0.39%), vegetable ghee (tin) (0.18%), eggs farm (0.15%), gram pulse washed and tomatoes (0.9% each) and rice Irri-6 (0.08%).

In addition, the cement prices registered a decline of 0.89% from previous week. The average price of cement, as compared to corresponding period of previous year, has gone down 8.38%. In Quetta, its rate was Rs235 per bag in contrast to Peshawar where it was being sold at Rs203.

According to cement industry insiders, cement is being exported to Afghanistan at a subsidized rate of Rs70 per bag. But as substantial quantity of this ‘exported’ cement is being re-exported to Pakistan, there arose a glut of cement at places close to Afghan border. That may explain the lowest price of cement of Peshawar in four years.

Prices of seven items recorded considerable increase during the week under review as against previous week as follows: Bananas (2.60%), beef (0.49%), mutton (0.48%), firewood (0.29%), curd (0.27%), wheat (0.23%) and vegetable ghee loose (0.16%). Nevertheless, the prices of as many as 28 essential items of SPI basket remained unchanged.

As regards fertilizers, the prices of four varieties increased during the period under review as compared to previous week, while the prices of six other varieties remained unchanged. The fertilizers which became more expensive were as follows:

Urea Kisan (0.45%), Dia Ammonia Phosphate (0.33%), Nitro Phosphate (0.08%) and S.SP. Phosphate (GR) (1.63%).