In 2019, fuel prices dipped, food soared

KABUL (Pajhowk): The prices of primary food items increased by around 12 percent and of gold 23 percent while rates of fuel dipped by eight percent during the outgoing year.

The value of Afghan currency downed by two percent against US dollar in 2019.

Experts say the afghani lost its value against US currency due to hike in prices of imported goods and political and security situation of the country also had their impact on rates.

They say the rates would reduce if the Afghan government focused on domestic agriculture products.

Oil prices down while gas remain stable compared to 2018

Abdul Hadi, a worker in Wazirabad Fuel Station in capital Kabul, told Pajhwok Afghan News that one liter of petrol cost 50afs and the same quantity of diesel 48afs today. A liter of petrol was priced 57afs during the same period in 2018.

Abdul Hadi said fuel prices last year were also high in international markets and closure of roads by snowfall was another factor that increased fuel rates.

Liquefied gas price

The price of liquefied gas varied in different provinces but its rate remained almost the same in 2019 compared to 2018.

According to Pajhwok reports, a kilogram of liquefied gas cost around 60afs to 70afs last year and current price of a kilogram of gas is 65afs in Kabul.

Essential food items

The price of cooking oil increased by 30 percent, flour by 21.5 percent, sugar 18.6 percent, rice 10 percent, green tea 7 percent black tea more than 6 percent in 2019 compared to in 2018.

The price of food items increased on average 11.5 percent in 2019.

Mohammad Samim, a wholesaler in Kabul Mandavi Market, said that the wholesale price of 49kg of Kazakhstani flour was 1,600afs, 69kg of Pakistani sugar 2,040afs, 24kg of Pakistani rice 2,200afs, 16 liters of Khurshid ghee 1,300afs, a kilogram of Indonesian green tea 300afs and the same quantity of African black tea 320afs.

During the same period last year, the price of 49kg of Kazakhstani flour was 1,320afs, 24kg of Pakistani rice 2,000afs, 49kg of Pakistani sugar 1,720afs, 16 liters of Khurshid ghee 1,300afs, a kilogram of Indonesian green tea 280afs and the same quantity of African black tea 300afs.

Mohammad Samim said prices of flour and rice also increased in the importing countries.

He said depreciation of the afghani against the US dollar was another factor of increased prices.

US dollar value increased by 2pc against afghani

The value of Afghan currency recently increased by a small percentage but its value against the US dollar was unstable throughout the year.

According to Haji Mir Hussain Sadaqat Money Exchange Service in Sara-i-Shahzada in Kabul, one US dollar was accounted for 77.30afs today. In the same period last year, one US dollar valued at 75.85afs.

Sadaqat, owner of the service, said the presidential election, political tensions and insecurity in the country were major reasons that affected Afghan currency against the US dollar in 2019.

Gold price increased by 23pc in 2019

Haji Fawad Ahmad Salehzada, a jeweler in Timor Shahi area of Kabul, said that one gram of Arabian gold cost 3,000afs and the same quantity of Russian variety 2,500afs today.

A gram of Arabian gold cost 2,450afs and the same quantity of Russian variety 1,950afs last year.

Salehzada said hike in gold prices in international markets was the reason of its price hike in Afghanistan.

Kabul residents complain high prices

Shekwah Sultan, a resident of Khairkhana area of Kabul said, “The prices of goods increased in 2019 and so the value of US dollar while people’s income was very low amid wide scale joblessness.”

She said prices would not have increased had the Ministry of Agriculture, Irrigation and Livestock (MAIL) focused on domestic agriculture products.

She hoped the prices would go down and agriculture products increase in Afghanistan in 2020.

Economic experts: There are many reasons that affected prices

Saifuddin Sayhoon, a lecturer of economy in Kabul University, said that Afghanistan faced many problems in the economy area during 2019.

“There are many reasons that led to the increase in food items prices and the value of Afghan currency downed, unfortunately we have an imports-based economy, we still rely on foreign markets while our agriculture production is very low, we still keep very wrong monetary systems and illegal extortion on highways is another problem,” he said.

He also said political problems such as problems in the presidential election, delaying the election results and deteriorated security situation in the country contributed to the price-hike in the country.

Sayhoon said domestic products should increase and the monetary system reformed for prices control and keeping the Afghan currency strong against US dollar.

Mds/ma