The federal government has directed provincial administrations to take action against petroleum product dealers who have failed to pass on the full benefit of recent price reductions to consumers. Despite multiple cuts in petroleum prices, the government has noted that the savings have not been fully transferred to consumers due to poor administrative control at the provincial level. The latest push came during a meeting of the National Price Monitoring Committee (NPMC).
In the meeting, the Secretary of the Ministry of Planning, Development, and Special Initiatives emphasized the need for provinces to enforce decisions regarding the reduction of petroleum prices. He called for a detailed report from the Pakistan Bureau of Statistics (PBS) on the key factors influencing inflation, particularly in relation to fuel price changes. Provincial governments are also expected to share their reports on the steps taken to ensure that price cuts are passed on to consumers.
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The committee also addressed the issue of pulses, with the Ministry of National Food Security and Research revealing that over 60% of pulses are imported, and local production largely depends on rainfall in regions like Sindh and southern Punjab. A study will be conducted by the Punjab government to formulate a policy to boost pulse production.
Regarding inflation, the Consumer Price Index (CPI) saw a significant decrease, dropping to 4.9% in November 2024 compared to 29.2% in November 2023. Food inflation, both in urban and rural areas, also showed a sharp decline. However, an increase in the prices of essential items like garlic, sugar, and cooking oil was noted.
In response to the impact of online stores on commodity prices, the PBS announced that future surveys would account for online market prices, with a special focus on Sasta Bazaars. The next NPMC meeting will also include a detailed presentation on pulses cultivation and the implications of online purchases on inflation.
