23/06/2011 (Daily Times) - The Utility Stores Corporation of Pakistan (USC) has made its first upward revision in ghee and cooking oil prices after announcement of the budget, which will put an adverse impact on the already bruised consumers, who are working hard to make ends meet.

The decision, which came into effect a few days later after the budget for fiscal year 2011-12’s announcement on June 3, 2011, has been implemented on more than 150 outlets operating in Karachi. This step has drawn sharp criticism from a large number of consumers, majority of which hail from lower segment of the population already reeling under the rampant inflation in prices of essential commodities.

The recent increase has been made by Rs 7 per kilogramme (kg) pushing rates of open ghee and cooking oil to the level of Rs 164 per kg as compared to its old prices of Rs 157 per kg.

As a consequence of the latest increase in open ghee and cooking oil rates by the USC, the price difference between the rates of USC outlets and the retail markets has squeezed to Rs 16-18 per kg as against the previous rates of Rs 24-26 per kg.

It may be recalled here that before the budget, both open ghee and cooking oil were showing a reversing trend in prices at USC and went down to at least Rs 150 per kg.

The increase which was made by the corporation without taking into account pros and cons of declining buying capacity of helpless buyers is also anticipated in the decreased sales of open cooking oil and ghee at more than 150 USC outlets operating in Karachi.

It transpired during a visit to one of the outlets of the USC situated at Frere Road, Saddar that buyers have reacted strongly to the fresh increase in prices of both the commodities terming it as unjustified and against the interest of buyers, majority of whom belong to the lower segment of the population.

“I always prefer purchasing most of the commodities including ghee and cooking oil in the hope of saving some amount but the newly enhanced prices would be a blow on my meagre financial resources,” claimed buyers while replying to a query of the scribe.

Talking to this scribe, consumers at other USC outlets said pulling out the subsidy facility on all essential items including flour, ghee, sugar, milk, tea, cooking oil, rice and other such items has left little attraction for the low-income consumers’ group to waste their energy and invaluable time at USC outlets mainly owing to the fast shrinking gap between the prices of essential items at the utility stores and the retail market.

The USC was established by the government with the sole objective of provision of subsidised commodities to the general consumers but on the contrary it has assumed the role of greedy retailers who never hesitate to pass on the burden of any increase in the rates of essential commodities on to the consumers, claimed a panicked buyer at a USC outlet situated at Block N, North Nazimabad.

An official of the USC responding to a query of the scribe termed the fresh increase as a sequel to the constant upward trend in the rates of palm oil in the international market compelling the corporation to pass on the additional cost to the consumers.