Falling oil prices yet to mirror in local markets

LAHORE: The benefits of falling international oil prices and rupee depreciation are not reflecting in the domestic rates of lubricants and edible oil majorly imported in Pakistan, observed experts on Friday.
They said prices of crude oil and petroleum products have dropped 58 percent in the global market in the past few months. However, local prices of motor lubricants of all brands are still at the level of mid 2014.
“The government should take notice of this undue profiteering by the companies,” said Dr Kishwar Dhingra, a social worker. “Likewise, edible oil prices in global market hit the lowest mark since 2009, while freight cost has come down.”
Huge depreciation of Pakistani rupee versus Japanese yen, said Dr Dhingra, calls for a substantial cut in the prices of locally-made vehicles.
“When yen appreciates the assemblers promptly increase the prices of vehicles and in an opposite case they are not moved,” She said. “The government should establish its writ instead of overlooking its regulatory role.” Fauzia Tahir, a housewife, said baring chicken meat the rates of all other daily use items, including toothpaste, shampoo, meat, beef and pulses have either increased or are at the level prevalent four months back. Bus fares have decreased, but the fares of other public transports, like rickshaws and taxis are as high as ever, she said.
Abdul Basit, ex-senior vice president of Lahore Chamber of Commerce and Industry said the government is directionless as far as price control is concerned.
“While sugar, mutton and beef are being sold at arbitrary rates the provincial government is unreasonably pressing poultry farmers to bring down prices,” said Basit. “Poultry prices are still one-year low.”
He said the government should reduce the power tariff.
“Circular debt is an administrative issue that should be tackled by improving efficiencies and governance and controlling power theft and distribution losses,” said Basit. “The government should get rid of incompetent staff in the power sector to provide real relief to the consumers.”