Prices of split ACs going up

12 Jun, 2009

Split air conditioners are in short supply in the city and available ACs are 15 to 45 per cent more dearer than their actual price, a survey conducted by the Business Recorder has found. Sources in the market said the traders of split ACs had held back the supply as they anticipated a rise in split AC prices in the coming federal budget.
However, traders denied this saying that the manufacturers had withheld supply. Split ACs are in a short supply in two main markets in the city - Hussain Agahi and Haram-gate area. The shopkeepers generally 'book' the customers' orders, and ask them to wait around 15 days for delivery. The customers are forced to pay an added amount to get immediate delivery.
The prices of 1-ton and 1.5-ton split ACs have surged by around 15 to 45 percent as compared to last year. The highest increase is in the prices of 1-ton ACs, whose prices have increased by around 30-40 percent. The prices of 1.5-ton split ACs have increased by 15-25 percent.
"Customers in various markets believed that the traders expected that the government would levy duties and taxes on split ACs, and had created an artificial shortage. The government is expected to increase taxes on split ACs to discourage their use. This will make ACs expensive and I think that's why the shopkeepers are stocking them," Shaikh Rizwan Ahmed, a customer said. He said he wanted to buy a 1-ton split AC. "Two shopkeepers have told me that if I pay Rs 2,000 extra, I can get the AC within hours," he said.
Traders claimed that the prices of ACs had been raised by the manufacturers, and they did not control the prices. They said the high demand and the short supply had created the shortage in the market. Rana Birjees Ahmed, who owns an electronic appliances store, said, "We book our orders with the companies, who then supply us the ACs. But, if we don't get the supply, it's not our fault."

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