RAWALPINDI – Despite a reduction in petrol and diesel prices, rates of vegetables, fruits, and essential commodities in open markets and wholesale bazaars have not decreased. The administration’s announcement of reduced transport fares also proved ineffective, leaving consumers to bear the burden of high prices even as fuel costs have fallen.
Meat, Poultry, and Dairy Prices
In the open market, chicken is being sold at Rs650 per kg, eggs at Rs240 per dozen, beef at Rs1,500 per kg, and mutton between Rs2,400 and Rs2,500 per kg. Milk is priced at Rs220 per litre and yoghurt at Rs240 per kg. These prices remain elevated despite the government’s announcement of reduced transport fares, suggesting that retailers are not passing on the benefit of lower fuel costs to consumers.
Pulses and Groceries
Among pulses and groceries, white chickpeas are Rs430 per kg, gram pulse Rs390, mash pulse Rs600, cooking oil Rs510, and sugar Rs160 per kg. The prices of pulses have remained stable in recent weeks, but cooking oil and sugar continue to be expensive.
Vegetable Prices
Vegetable prices remain high across the board. Potatoes are selling at Rs40-50 per kg, onions at Rs90-100, tomatoes at Rs100, peas at Rs120, lemons at Rs200, bitter gourd at Rs140, carrots at Rs100, ginger at Rs350-400, local garlic at Rs300, and Chinese garlic at Rs500 per kg. Capsicum is Rs160 and okra Rs300 per kg.
Fruit Prices
Fruit prices also remain elevated. Apples are selling at Rs300-400 per kg, bananas at Rs200-250 per dozen, oranges at Rs300-500 per dozen, pomegranates at Rs700, and grapes at Rs600-640 per kg.
Analysis: Broken Transmission Mechanism
The lack of price reduction despite lower fuel costs highlights a broken transmission mechanism between fuel prices and consumer goods. When fuel prices rise, retailers and transporters are quick to increase prices, citing higher transportation costs. But when fuel prices fall, the same logic does not apply in reverse.
Several factors contribute to this phenomenon. First, market power: retailers may keep prices high to increase profit margins, especially if they believe consumers have no alternative sources. Second, expectations: if retailers expect prices to rise again, they may maintain high prices rather than adjusting downward. Third, other costs: while fuel is a significant input, other costs — including labour, storage, and spoilage — may have increased.
The administration’s announcement of reduced transport fares was intended to lower the cost of moving goods from wholesale markets to retail outlets. But if transporters do not actually reduce fares, or if retailers do not pass on the savings, the announcement has no effect.
For consumers, the result is frustration. The government announced fuel price cuts, but their grocery bills remain unchanged. The gap between policy and reality undermines public trust.
For the government, the challenge is to enforce price controls and ensure that the benefits of lower fuel costs reach consumers. The Rawalpindi administration’s experience suggests that announcements alone are not enough.
