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Fuel prices push transport costs higher as traders warn of rising food prices

The government’s new fuel prices mechanism has triggered a sharp rise in transport costs, prompting wholesalers and traders to warn that consumers could soon face higher prices for essential goods across Pakistan.

The introduction of daily adjustments to petrol and diesel prices has led transporters to increase freight charges for intra-city, inter-district and long-haul cargo services. The higher transport costs have raised concerns among wholesalers over the impact on food prices.

Transport operators have imposed an immediate 5% increase in freight rates. Truck and trailer operators transporting goods from Karachi to Rawalpindi have reportedly raised freight charges to more than Rs800,000 per consignment. Many operators have also started charging traders extra if diesel prices increase while shipments are in transit.

Wholesale traders, particularly those dealing in fruit, vegetables and grocery items, fear the additional transport costs will eventually translate into higher retail prices. Delivery charges for pulses, sugar, flour, rice and other essential commodities have already increased.

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Meanwhile, petrol pump owners welcomed the government’s decision to introduce daily fuel price revisions, saying the policy reflects changing international market conditions.

Goods Transport Union Secretary Faiz Akbar said the new pricing system has made it difficult for transporters to offer fixed freight rates for long-distance deliveries.

“Heavy vehicles travelling from Karachi to Rawalpindi or Peshawar usually refuel three or four times during a single trip. If diesel prices increase during the journey, drivers cannot absorb the additional cost, so transporters have to pass it on through higher freight charges,” he said.

Nanbai association seeks higher bread prices

The All Pakistan Nanbai Association has also demanded an increase in the official prices of roti, naan and other bakery products, citing soaring flour, gas and transportation costs.

The association proposed raising the price of a red flour roti from Rs17 to Rs25 and called for revised rates for naan, kulcha, paratha and roghni naan.

Association leaders asked the district administration to approve the new prices by July 31 and warned they would implement the revised rates from August 1 if officials failed to act.

They also threatened an indefinite shutdown of tandoors across Punjab if authorities imposed fines or legal action against bakery owners.

The association has scheduled a General Council meeting on Thursday to endorse its decision.

Leaders said the government had failed to provide subsidised flour under the existing agreement. They added that only about 7,000 flour bags are currently available for distribution despite the district’s 4,500 tandoors requiring five 20kg bags each per day.

According to the association, the price of a 79kg flour bag has climbed to Rs11,500, while fine flour costs Rs12,650. Commercial gas cylinders now sell for up to Rs19,000, with rising prices of ghee, dry milk, sesame and transport further increasing production costs.

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