LAHORE, Sept 20: The government claim of price control during Ramazan was belied when the Utility Stores Corporation increased the rates of almost entire range of commodities by 10 to 15 per cent.

Even the price of its own brand of vanaspati (Utility Ghee) has been raised. One liter of vanaspati, which used to cost Rs57 till a week ago, is now available at Rs66. Similarly, prices of spices have gone up from Rs13 to Rs16 per 50 grams.

Red chili price has gone up from Rs18 per 50 gram to Rs21 and black pepper from Rs10 to Rs13. Prices of pulses have also gone up and so is the price of rice - from Rs36 per kg to Rs37.

“These stores are as crude a commercial venture as any other such initiative,” says an official of the corporation. “The corporation incurs very heavy administrative cost for running these stores, apart from usual corruption in the system. All this cost is passed on to the consumer, and net result is price hike. Runaway inflation is also a big factor.

There is hardly any charity motive or social good as being claimed by the government,” he said.

“The reason behind the price hike is stated to be inflation in open market, and the corporation is passing it on to consumers like other retailers. In fact, there is no fiscal cushion available to the corporation. It has to finance itself and run store with the profit money. That is why prices keep rising in these stores, albeit a bit slowly than open market,” he added.

The government keeps eulogising the services of utility stores in order to show it is “doing” something against price hike, and raises level of public expectations, says Muhammad Munir of Allama Iqbal Town.

Every one knows that limited coverage of these stores is only a propaganda tool for the government, but even then the poor hopes against hope for some cheaper commodities there, he adds.

These stores have such a limited presence in the city that they could hardly make a difference for common man.