The federal government has instructed provincial administrations to take action against petroleum product dealers who have failed to fully pass on the benefits of recent price cuts to consumers.
Despite several reductions in petroleum prices, consumers have not received the full benefit due to weak administrative control at the provincial level. The government has now called for stricter administrative measures from the provinces to ensure price reductions reach the public.
This issue was addressed during a recent meeting of the National Price Monitoring Committee (NPMC).
At the meeting, the secretary of the Ministry of Planning, Development, and Special Initiatives emphasized the need for provincial governments to implement previous NPMC decisions, particularly those related to the reduction in petroleum prices and the necessary administrative steps.
The Pakistan Bureau of Statistics (PBS) was also tasked with preparing a report on the main factors driving inflation, in line with earlier decisions. Provincial governments are expected to submit reports on the implementation of petroleum price reductions and the actions taken.
Regarding pulses, the Ministry of National Food Security and Research’s economic consultant noted that over 60% of pulses are imported, with local production mainly consisting of moong and gram, the latter’s production being dependent on rainfall in Sindh and southern Punjab. A Punjab government representative shared concerns over declining pulse cultivation and mentioned plans to study ways to increase production.
The PBS deputy director general presented an overview of recent commodity price trends, highlighting a decrease in inflation, with the Consumer Price Index (CPI) falling to 4.9% in November 2024, down from 29.2% in November 2023 and 7.2% in October 2024. A significant reduction was also seen in food inflation for both urban and rural areas.
The Sensitive Price Indicator (SPI) for the week ending December 5, 2024, showed a 0.34% decrease on a weekly basis and a 3.57% increase compared to the previous year. The prices of garlic, vegetable ghee, potatoes, petrol, diesel, onions, sugar, and cooking oil saw an increase during this period.
The chief secretary of Azad Jammu and Kashmir (AJK) requested the inclusion of three cities in the Decision Support System for Inflation (DSSI) to help monitor commodity prices in the region. The PBS clarified that AJK was not part of the CPI but would make separate arrangements.
The PBS also revealed plans to include online markets and Sasta Bazaars in their next survey to assess the price impact of these platforms.
Following a detailed discussion, the committee agreed that the Ministry of National Food Security and Research would present a report on pulse cultivation and supply at the next meeting. The Punjab government will share its study on pulse production decline and proposed solutions. The State Bank of Pakistan will provide an in-depth analysis of inflation drivers, and the Ministry of Planning, Development and Special Initiatives will conduct a preliminary study on the impact of online shopping on price levels.
