NPMC observes fuel price cuts failed to impact transport fares

ISLAMABAD: The National Price Monitoring Committee (NPMC) on Tuesday observed that the recent decrease in petroleum prices has not been effectively reflected in transport service charges.

Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal chaired the NPMC meeting held in Islamabad on Tuesday.

Federal Minister for Petroleum Mussadiq Malik also attended the meeting and presided over one session. Representatives from the Pakistan Bureau of Statistics (PBS) gave a detailed presentation on the inflation situation, highlighting significant disparities between the prices of various food items and those available in the open market.

Ahsan Iqbal praised the efforts of various government entities in reducing the inflation rate, which has been on a continuous decline during the current fiscal year. Inflation fell to its lowest level in 44 months, standing at 6.9% in September 2024, compared to 31.4% in September 2023. Notably, food inflation showed a remarkable decline, with urban food inflation dropping to 1.7% from 33.9% over the year, while rural food inflation turned negative (-0.9%), compared to 35.4% in the same month last year. The prices of wheat flour and petrol (super) also saw significant decreases of 37.1% and 20%, respectively, compared to the same period last year.

The PBS further highlighted large gaps between wholesale and retail prices of essential commodities at both provincial and national levels. It was also noted that the reduction in petroleum product prices has not been passed on to transport service rates.

Ahsan expressed concern over this issue and directed provincial governments to take immediate steps to reduce the transport fares as well as wholesale and retail prices.

He emphasized that the government was committed to providing maximum relief to the public and that no compromise will be made in this regard. He said a significant reduction in inflation was observed in the current month compared to the previous month, with food prices showing a considerable drop from the previous year. Both Ahsan Iqbal and Mussadiq Malik reiterated the government’s dedication to offering relief to the people of Pakistan. They called on provincial governments and the Islamabad Capital Territory (ICT) administration to strictly enforce price control mechanisms, particularly in reducing the wholesale-retail price differential and ensuring a decrease in transport fares.