Daily goods prices remain high despite drop in transportation costs

KATHMANDU: Retail prices of diesel and petrol were Rs 172 and Rs 175 per liter, respectively, on January 8. Since then, fuel prices have come down repeatedly. Diesel, for example, is currently available for Rs 143.5 to Rs 146 per liter, depending on the location. Petrol prices have also decreased to Rs 161.5-Rs 164 per liter.

In line with the reduction in fuel prices, public transportation fares have also come down. According to the Department of Transport Management (DoTM), transportation fares have decreased by 3.09% in Tarai districts and 2.78% in hilly districts. Despite the decrease in transportation fares, daily commodity prices have not decreased, and inflation continues to affect Nepali households.

Prices of daily consumable goods such as eggs, rice, lentils, and green vegetables, however, have not come down. On the contrary, prices of some commodities have increased. According to the Nepal Retailers Association, the price of sona mansuli rice has gone up by Rs 10 per kg in one month.

Similarly, prices of vegetables like tomatoes have also increased. According to the Kalimati Fruits and Vegetables Market Development Board, tomatoes, available for Rs 35 per kg a month ago, now cost Rs 100 per kg.

Consumer rights activist Madhav Timilsina said consumers are not benefiting from the reduction in transportation fares as traders seem bent on making more profits. He also stated that regulatory agencies should intervene and ensure that consumers benefit from the reduced transportation fares.

“Prices of daily consumables should have come down, at least nominally, with the reduction in transportation fares. But people haven’t been able to experience that,” he added. “Nepal Oil Corporation (NOC) and DoTM showed their presence by reducing fuel prices and transportation fares, respectively, now the onus is on the Department of Commerce, Supplies, and Consumer Protection.”

However, Bhesh Bahadur Kunwar, director of the Department of Commerce, Supplies, and Consumer Protection, said the department has been conducting daily market monitoring. He added that the department conducted monitoring at 15 business firms on Wednesday.

Consumer rights activists complain that the department has been failing to make its monitoring effective.

According to the Nepal Rastra Bank (NRB), inflation remained at 7.77% until mid-June. The central bank had set a target of containing inflation at 7% in 2022/23.