KARACHI: A fall of over six rupees in the price of diesel did not make an instant impact on prices of various other commodities in the retail market.

Consumers hopes dashed when markets opened on Wednesday after a two-day closure on account of Muharram, and they saw no relief in prices.

The market is, however, expecting some pressure on prices in the coming weeks.

A retailer at Tariq Road said distributors of various fast-moving consumer goods did not give a positive hint over any future price drop in the wake of fall in petroleum prices. Some distributors of companies have, on the contrary, cautioned over price hike, without assigning any reason.

If the government is really concerned over the price issue, it should make a major cut in diesel prices for a more prominent impact on prices of goods being transported on diesel vehicles, he added.

Karachi Wholesale Grocers Association (KWGA) Chairman Anis Majeed anticipated only 50 paisa to Re1 kg relief at wholesale markets in the prices of various commodities. He said operators of diesel trucks and bulk carriers had earlier hinted at three to five per cent cut in transportation charges, but so far they have not reduced the fares.

He said that the arrival of locally produced goods from the up-country and imported goods from the port could not start in full swing after the fall in petroleum prices due to Muharram holidays. The wholesale market also remained shut till Nov 4. So the impact of cut in diesel price was not immediately visible, but by next week, depending on the cut in transportation cost as announced by the goods carrier owners, there may be some relief for consumers.

In greens, the price of tomato and onion have fallen at retail markets following fall in their wholesale prices due to improved supply and start of new crop.

Tomato which was earlier being sold at Rs60-80 now sells at Rs40 per kg while onion is now available at Rs30-40 as compared to Rs45-50 during Muharram.

Falahi Anjuman Wholesale Vegetable Market President Haji Shahjehan said vegetables and fruits mainly arrive in big diesel vehicles from the up-country. He said that the fall in the wholesale price made an instant impact on retail prices and more relief is expected in view of low transportation charges from the up-country vehicles.

Transportation of pulses, wheat, sugar, rice takes place in diesel-operated bulk goods carriers from the producing areas to the markets. Similarly, goods arriving at the port also use diesel.

Fruits and vegetables reach Karachi from the up-country in diesel trucks, but for their transportation from Super Highway market to city’s main markets, Suzuki pickups are used. However, the fall in prices depends on the attitude of transporters, commented a retailer.

Published in Dawn, November 6th, 2014