KARACHI: Prices of essential goods are under pressure as the Gulf war, which began on February 28, has pushed up transportation and energy costs, affecting both wholesale and retail markets.
Shipping companies have raised freight and war risk charges, causing the landed cost of imported finished goods and raw materials to surge. A market survey conducted before and after the conflict shows significant increases in meat prices ahead of Ramazan and Eid.
- Beef: Currently averaging Rs1,000–1,500 per kg, with veal jumping to Rs1,800 from Rs1,600. Prices had already risen Rs100–200 per kg prior to Eid.
- Mutton: Steady at Rs1,800–2,750 per kg across cities since February 28. Despite stalled exports, domestic demand during Eid kept prices high.
- Chicken: Increased to Rs360–500 per kg from Rs300–420 before the war.
Pulse prices (Masoor, Moong, Maash, and gram) have largely remained stable at Rs220–320, Rs340–460, Rs400–540, and Rs210–340 per kg, respectively, according to the Sensitive Price Index (SPI).
Fuel impact:
Rauf Ibrahim, head of the Karachi Wholesalers and Grocers Association, noted that a Rs55 per litre diesel hike added Rs5–7 to wholesale edible prices, though retail costs remained largely unaffected due to Eid holidays.
Cooking oil and ghee:
- Branded cooking oil (5kg) – Rs2,850–3,110
- Ghee (2.5kg tin) – Rs1,400–1,587
- Ghee (1kg) – Rs560–592
Domestic palm oil prices have risen to Rs16,000 per maund from Rs15,000, while international rates are $1,220–1,240 per tonne, up from $1,020 pre-war. Industry experts say price hikes will be limited as Pakistan has sufficient stocks of 550,000 tonnes for three months.
Vegetables and wheat:
- Potatoes – Rs20–70/kg
- Onions – Rs40–130/kg
- Tomatoes – Rs40–140/kg
- Wheat flour (20kg) – Rs1,810–2,710; (10kg) – Rs1,068
Inflation outlook:
Shankar Talreja of Topline Securities warns that Brent crude at $100/barrel could push inflation to 7–11% over the next year. Transport costs, influenced heavily by fuel, are expected to rise 18% month-on-month. The March Consumer Price Index (CPI) is projected at 7–7.5% YoY, up from 6.99% in February.
Overall, rising global oil prices and war-driven freight costs are squeezing consumers, particularly in the transport and food sectors.