Food Bills Climb Even as Fuel Prices Fall

Consumers continue to face rising food prices despite a sharp decline in transport fuel costs, with prices of key staples and vegetables remaining elevated even as diesel and liquefied petroleum gas (LPG) become significantly cheaper.

 

Tomato prices have surged to Rs300–400 per kilogram over the past 10 days, compared with Rs120–160 in late June and Rs80–100 a month earlier. Onion prices have also increased to Rs100–120 per kilogram from Rs80–100, while potato prices have remained stable at Rs40–80 due to weak export demand from Afghanistan and Iran.

 

According to growers and wholesale market representatives, limited supplies from Balochistan are driving tomato prices higher, as local production is insufficient to meet nationwide demand. Fresh crops from Sindh are expected to reach markets by mid-September, while imports from Iran may help ease shortages in the coming weeks.

 

Traders said transport costs have not declined in line with falling diesel and LPG prices, with transporters largely maintaining existing freight charges. Retailers have also been accused of widening price margins, keeping consumer prices significantly above wholesale levels.

 

Pakistan Bureau of Statistics (PBS) data shows vegetable exports during the first 11 months of FY2025-26 declined sharply to 550,913 tonnes worth $152 million from 1.4 million tonnes valued at $353 million a year earlier, largely due to lower shipments of potatoes and onions.

 

Although LPG prices have fallen to around Rs300 per kilogram from a peak of Rs480, while diesel prices have declined to Rs309.50 per litre from Rs399 in early May, consumers have yet to benefit from lower transportation costs.

 

Wheat flour prices have also continued to climb. According to the Sensitive Price Index (SPI), a 20kg flour bag now sells for Rs2,750–2,900, compared with Rs2,500–2,800 in mid-June. Prices of 10kg wheat flour bags and fine flour have also increased, with Karachi continuing to record the highest wheat flour prices among major cities despite government efforts to curb hoarding.

 

Meanwhile, prices of major pulses have remained largely unchanged, while cooking oil and ghee have recorded modest increases. Five-litre cooking oil is now priced at around Rs3,045–3,065, while ghee and one-litre cooking oil pouches have also become more expensive compared with pre-conflict levels.

 

Market participants say that despite lower fuel costs, supply shortages, transportation practices, and retail pricing continue to keep food inflation elevated, limiting any relief for consumers.