PAN, November 13, 2011

Herat witnesses sharp increase in fuel prices

He accused fuel importers of manipulating prices during cold weather

By Ahmad Quraishi

A sharp increase has been registered in fuel prices over the 10 days in western Herat province, which borders a major gas exporting country, Turkmenistan.

The price of a kilogram of liquefied gas has increased by 25 afghanis during the period, residents of Herat city, the provincial capital, say

As the weather turned chilly, the provincial capital has been witnessing continued power outages over the past four days, with the prices of wood and coal registering a 50 percent surge.

Residents say the government has been unable to take action against traders making artificial increase in gas rates.

Before Eidul Azha, a kilogram of gas was sold for 45 afghanis, but its rate increased up to 70 afghanis after the festival, Faiz Ahmad, a resident said. He said the government had no control over commodity prices.

Hafizullah, another resident, said the rate of one tonne of coal increased to 7,000 afghanis against its previous rate of 2,000 and the price of a kilogram of Pakistani coal increased 35afs from 25afs over the past more than a week. While the rate of a kilogram of wood also increased from 10afs to 15afs during the period, he said. "Electricity is provided to us for a few hours and the city braced hours-long continued power outages over the past four days," he complained.

An official at the governor's house, Bashir Ahmad Ibrahimi, acknowledged the fuel prices had increased in the city. However, he said the prices would be brought under control soon.

He accused fuel importers of manipulating prices during cold weather. A lack of storage facility and problems in gas transportation also resulted in soaring gas prices, he said.

The Shakib Yonus Fuel and Gas Company director, Yonus Ghazi Zada, linked increase in gas prices to surge in crude oil prices in the international markets, cold weather conditions, increased demand of the product during Eid days and no business activity at the Sharak-i-Torghondi port during Eid holidays.

He said if the government established fuel storages such problems would not happen.

Mohammad Taher, deputy head of power and energy department, said two power transmission lines had been damaged due to snowfall and wind storms in the Baqarchar area north of the province.

"Herat needs 160 megawatts of electricity and the electricity currently provided to the province cannot meet its requirements," he said.

However, he said a local company had been given a contract to install two transformers which would double the import of electricity from Iran to the province.

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