ISLAMABAD: Ordinary consumers and the business community alike have expressed annoyance over the delay in the trickle-down effect of reduction in petroleum prices and conveyed their feelings directly to Prime Minister Nawaz Sharif.

The PM visited two markets of the federal capital last Sunday, February 8, and the feedback from both the buyers and the sellers was that the prices were still high.

Consumers told the premier that there was little relief from the declining oil price while the shopkeepers said that sales were sluggish mainly due to high prices as consumers had limited purchase power. They blamed the wholesalers and manufacturers of not passing on the benefit of oil price reduction.

However, the business community of twin cities Rawalpindi and Islamabad have blamed the government for failing to ensure the equitable dispersal of oil cost cut benefits to all sections of the society.

“The public sector has a key role and only the government’s intervention in the market can help in this case,” said Muzammil Hussain Sabri, president Islamabad Chamber of Commerce and Industry.

He said that if the fares and tariffs of railways, PIA and even NLC are reduced than there will be strong pressure on private carriers to reduce the rates too.

“I think there is no impact because the government seems to have no direction in this regard,” he added.

Similarly, Asad Mashadi president Rawalpindi Chambers of Commerce and Industry, (RCCI) said that the trickle-down effect was not visible.

“Even though the transportation cost has come down, but its only for those people who own a car or a bike,” Mr Mashadi said.

Published in Dawn, February 15th, 2015

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