Fuel price hike triggers inflation explosion

Transport fares, prices of vegetable, commodities and daily use items jump overnight

RAWALPINDI: A new wave of inflation has hit people of Rawalpindi on Thursday after increase in petroleum prices.

Worst affected are the daily wage earners and the vulnerable sections of the society whose purchasing power for basic necessities has further diminished.

Although it takes strong government action to bring prices down after fuel prices fall, in case of an increase, rates of all commodities take wings at midnight when notification becomes effective.

The morning-after saw transporters increasing their fares unilaterally, without any announcement and without approval from Regional Transport Authority (RTA).



The increase in fares has caused number of fistfights between passengers and transporters in the already tense city, people told Daily Express.

Transporters with shorter routes have increased their fare by Rs3 per passenger while those on long distance routes increased fare by Rs5 per passenger.

Fare for single stop has also been increased by Rs2 while drivers of Qingqi rickshaws have also raised their fare by Rs2. Fares for taxi rides have also increased. According to a market survey, the owners of filling stations were happy after the announcement of Rs5 increase in petrol and Rs6.25 in diesel as they immediately made millions of rupees on their inventory within in few hours.

The adverse effect of the hike was also seen in the commercial markets where rates of everyday grocery items, vegetables and fruits went up due to increase in fare of the pickups, a market survey revealed.

Opportunists in the wholesale market, taking advantage of the situation, increased the price of ghee by Rs3 per kilogramme and rice by Rs5 although the stocks were not delivered daily and were lying in their warehouses for months.

Milkmen and dairy shop owners were not to be left behind.

Taking stance that supplying milk will become expensive with the increase in trucking charges due to fuel price hike, milk traders pushed up the prices unilaterally.

Between Wednesday and Thursday milk and yogurt became dearer by Rs5.

Meanwhile, retailers said that companies supplying toiletries and detergents have also released new price lists for their products effective from November 5.



Distributors have told the shopkeepers that the retail price for a cake of soap has been increased by Rs5-7 while price of for various washing powder brands have been increased by Rs10. After the increase, per dozen rates for eggs went up to Rs110 while chicken price went up to Rs160.

On the positive side, the price of gas cylinder for homes has been reduced by Rs165 while the price for commercial cylinder has plummeted by Rs673.

Published in The Express Tribune, November 2^nd, 2018.