March 16, 2008	Sunday	Rabi-ul-Awwal 7, 1429

KARACHI, March 15: The seven per cent hike in petroleum prices on Saturday, the second increase by the caretaker government in a month, is expected to turn prices of commodities, particularly food items, costlier.

The earlier increase in POL products on March 1 had an impact of 50 paisa to Re1 on essential commodities which had not been felt deeply as some wholesalers and retailers had absorbed the high transportation cost owing to availability of old stocks in hand.

The government has raised the prices of petrol by Rs4.11 per litre, HOBC by Rs4.89, kerosene by Rs2.71 and light diesel by Rs2.52. The new rates will be applicable for the current fortnight.

Traders in the major markets told Dawn that the purchasing power of general consumers had already weaken by 25-30 per cent following persistent increase in prices of food items and other commodities during the last many months and any fresh increase owing to POL hike may hurt sales of retailers.

They said the transporters had already raised freight charges from March 1 and they would be bound to pass on the impact of higher transportation cost to the consumers after the second hike in POL prices.

Karachi Retail Grocers Group General Secretary Farid Qureishi and Karachi Wholesalers’ Grocers Group chairman Anis Majeed estimated an immediate increase of Re1 per kg in essential goods as transporters (for inter-city movement) had raised the price to Rs12 per 50 kg bag on March 1 from Rs10 and from next week they would demand Rs14.

The freight charges from Hyderabad to Karachi had been raised to Rs390 per ton from Rs325 per on March 1 which would be further jacked up, they added.

Mr Anis claimed that the rising food inflation had squeezed the purchasing power of general consumers that has triggered rush at the utility stores for procuring essential commodities owing to rising gap between open market and government stores prices.

Poultry traders see fresh increase of Rs3 per kg in live bird prices despite the fact that its prices had surged by Rs28 per kg from March 1 to March 15 followed by Rs47 per kg rise in chicken meat.

Retailers have already put aside the official rates issued by the two associations — Karachi Wholesalers Poultry Association (KWPA) and Pakistan Poultry Association (PPA). However, there has always been a big disparity in the poultry rate between the two associations.

PPA had quoted the retail rate of Rs100 per kg for live bird but retailers are charging Rs110 per kg. PPA does not issue the rate of meat. KWPA had issued the live bird rate of Rs104 per kg and meat rate at Rs170 per kg. But retailers are demanding Rs190 per kg for its meat.

Karachi Wholesalers’ Poultry Association General Secretary Kamal Akhtar Siddiqui said that the increase in petroleum prices definitely had sole impact of Rs2 to Rs3 per kg and the same would be witnessed in coming days. The slow supply after a pick up in demand following start of marriage season was also pushed up poultry prices, he added.

Karachi Wholesalers Vegetable Market Super Highway President Haji Shahjehan said that transporters from the upcountry and interior Sindh had already enhanced the rate by Rs5,000 on 12-ton truckload from the upcountry and Rs8,000 on 20-ton truck-load from March 1.

“Now they will start charging new higher rates from next week,” he said.

Due to the fact that the vegetable prices are already high in the markets, the impact of transportation charges (ranging between Rs2 to Rs2.50 per kg from March 1) has not been felt.