Shifting gears of transport as fuel costs rise

ISLAMABAD:

While Islamabad is much smaller compared to some of the bigger cities of Pakistan, it is a bustling metropolis with a high number of commuters from the twin city as well as adjacent areas. The roads of the capital are some of the busiest.

But the emerging economic landscape marked by runaway inflation and ever-increasing fuel prices has spurred a shift in decisions regarding mobility and transportation.

In the face of these economic challenges, choosing to invest in a fuel-based vehicle has become an intricate decision, influenced by the fluctuating cost of fuel.

Data released in June 2023 by the Pakistan Automotive Manufacturers Association (PAMA) paints a bleak picture. It reveals a 37.7 per cent decline in vehicle sales during the current financial year. In terms of units, it means a decline from 2.163 million units to 1.348 million units.

Armaan Khan, a showroom owner in the federal capital, echoes the sentiment of many. He highlights the dramatic increase in car prices, exemplified by the soaring cost of a Daihatsu Mira 2020 model, which has surged from Rs2 million last year to a staggering Rs3.3 million.

The escalating fuel prices and rising vehicle costs has significantly dampened overall car sales, compelling citizens to explore more affordable transport options.

In this context, the recent hike in petrol prices has prompted middle-class and even some upper-class families to reevaluate their reliance on cars and turn towards more cost-effective alternatives, notably motorbikes.

According to the Federal Bureau of Statistics, motorbike ownership has witnessed a rise from 41 per cent in 2015 to a current 53 per cent.

This shift is exemplified by individuals like Muhammad Jasim, a resident of Rawalpindi, who opted for a motorbike as a means to reduce travel costs while meeting essential household needs.

Yet, as the cycle of inflation persists, shuttle services are becoming a popular choice among those seeking to cut expenses. However, for economically disadvantaged individuals, an even more economical solution is crucial.

Muhammad Shehzad from Bahawalpur, earning Rs45,000 per month as a tailor, has swapped his motorbike for a second-hand bicycle to combat soaring petrol costs. However, he highlights the inconsistency in bicycle pricing and urges relevant authorities to intervene and ensure fair pricing standards.

The rise in demand for bicycles is palpable, acknowledged Muhammad Azam, a bicycle retailer in Islamabad.

Offering a range of bicycles from Rs30,000 to Rs65,000, Azam's weekly sales range from 10 to 15 units, resulting in a monthly income of about Rs100,000. While he acknowledges the profit potential for sellers, he also expresses concern for daily wage earners who are adversely affected by these market dynamics.

Bicycles are emerging as practical substitutes for short distances, but the escalating petrol prices have fueled an even greater demand for them. This trend has prompted shopkeepers to raise bicycle prices.

Nasir Khan, a daily commuter, has resorted to the city's blue line metro for an affordable and sustainable mode of transportation. He urged authorities to expand coverage, ensuring economic mobility for a broader population.

In a nation grappling with economic instability and rampant inflation, the importance of saving has never been more evident. While inflation might be manageable for the middle and upper class, it poses a significant challenge for the lower class.

 

Published in The Express Tribune, August 28^th, 2023.