Oil price hike causes manifold rise in kitchen items

The trickle down effect of increase in prices of petroleum products has resulted in manifold raise in the rate of food basket in the wholesale market, traders said on Tuesday.
"Prices of pulses, rice, vegetables, fruits, edible oil and other commodities have increased mainly because of surge in transportation charges after recent increment in petroleum products" said Haroon, a wholesale trader in Gunjmandi who also complained of decline in business activities.
He said that edible oil price was all time high in the local market with 16-kg tin going up to Rs 2300 from Rs 2150, gram 40-kg bag increased from Rs 1185 to Rs 1300, rice basmati to Rs 70, vegetable per kg increased between Rs 5.
Price of fruits was also increased in the local market with per dozen orange going up from Rs 30 to Rs 50.
The increase in the prices also hampered business activities as masses' purchasing power has declined sharply, said Ilyas another trader adding "our business has gone down with increase in petroleum prices that escalated transportation charges, making everything expensive".
He said transportation charges of 25 to 28 tons goods, from Karachi to Rawalpindi, have increased to Rs 70,000 from Rs 40,000. From Jacobabad, the charges have increased to Rs 45,000 from Rs 32,000.
Similarly, the charges from Lahore have also increased by Rs 3000. The increase in transportation cost has resulted in manifold increase in the prices of commodities as it was added up in the prices. Even the prices of papers, photocopy have been increased. "Labourers are also demanding increase in their wages" he added.
The impact of increase on food items was awful because it was more than anticipated. The surge in prices of kitchen items particularly eroded purchasing power of the people.
The traders said the government has to remove duties on edible oil and other food items to bring down the prices whereas people believe that traders were charging more than the actual impact of oil price increase due to absence of any mechanism to check prices.
Noted economist Dr A Kamal talking to Business Recorder said, the increase in petroleum products was imperative and would have been made long ago due to high prices in the international market.
As taxes were must to meet fiscal deficit, he said the government has to go for capital gain tax, introduce wealth tax, gift tax, and plug the loopholes of tax evasion, if it really wants the poor are not hurt in the future. He also feared that real wages of the people will decline if the government did not increase at least 15 per cent increase in the gross salaries of employees.