Fuel Prices Up, Gold and Gas Down in Kabul: Weekly Market Review

KABUL – Fuel prices saw an uptick while the Afghan currency depreciated slightly against the US dollar during the outgoing week. Meanwhile, prices of liquefied gas, Indian sugar, and gold declined, and most basic food commodity prices remained stable, according to market sources.

The weekly market report highlights mixed signals for Afghan consumers, who continue to grapple with economic volatility. Although some essential items held steady, the rise in fuel costs could foreshadow broader inflationary pressures in the weeks ahead.

Fuel Prices Climb

Transportation and heating costs rose as fuel prices edged upward. A worker at the Ahmadyar fuel station confirmed that one litre of petrol increased from 65 afghanis (afs) to 67 afs, while diesel rose from 64 afs to 66 afs.

“The increase is moderate for now, but if global oil prices keep rising, we may see another hike soon,” the worker said. Higher fuel prices are expected to affect the cost of goods transportation across the city.

Liquefied Gas Becomes Cheaper

In a rare relief for households relying on cooking gas, prices dropped slightly. Mohammad Jan Amin, a shopkeeper in the Dahan-i-Bagh area of Kabul, said the price of one kilogram of liquefied gas decreased from 60 afs to 59 afs. While a marginal drop, it offers modest savings for low-income families.

Food Items: Sugar Down, Staples Unchanged

Zamari Safi, head of the Food Traders Union in Kabul, told  MEDIA that compared to seven days ago, the price of a 49-kg sack of Indian sugar dropped from 3,100 afs to 3,000 afs. He attributed the decline to improved supply from border markets.

Safi added that prices of other essential food items remained stable, including:

• Kazakh flour (49 kg): 1,500 afs

• Indian rice (24 kg): 2,500 afs

• Malaysian cooking oil (16 litres): 1,800 afs

• African black tea (1 kg): 380 afs

• Indonesian green tea (1 kg): 350 afs

Safi noted that retail prices are often slightly higher than wholesale prices, and in some cases, the gap can be significant due to transportation and storage costs.

Retail vs. Wholesale: A Noticeable Gap

Hamid Sufizada, a retailer at the Dahan-i-Bagh market, broke down retail prices for common household items:

• Kazakh flour (49 kg): 1,550 afs

• Indian rice (24 kg): 2,550 afs

• Indian sugar (49 kg): 3,050 afs

• Cooking oil (16 litres): 1,850 afs

• Black tea (1 kg): 400 afs

• Green tea (1 kg): 430 afs

The difference between wholesale and retail ranges from 50 to 80 afs per item, underscoring the margins that small shopkeepers rely on to cover logistics and overheads.

Gold Prices Decline on Global Trends

Precious metal prices followed international markets downward. Mohammad Fawad, a jeweller in the Timor Shahi area, reported that the price of one gram of Arabian gold decreased from 7,210 afs to 7,120 afs, while the same amount of Russian gold fell from 5,750 afs to 5,675 afs.

Gold traders confirmed that fluctuations in local gold prices are closely tied to changes in international bullion markets, where recent profit-taking and a stronger US dollar have pushed gold lower.

Currency Depreciation Against the Dollar

The Afghan afghani weakened slightly against the US dollar. Haji Mohammad Hussain, owner of Sadaqat Money Exchange Service, said one US dollar was traded at 64.40 afs, up from 63.80 afs the previous week. Meanwhile, 1,000 Pakistani rupees exchanged for 225 afs, unchanged from the prior week.

A weaker afghani could make imported goods including food, fuel, and medicine  more expensive in the coming weeks, putting additional strain on household budgets.

Outlook

While the decline in sugar, gas, and gold prices offers brief respite, the dual pressures of rising fuel costs and a depreciating currency may soon reverse these gains. Market observers advise consumers to monitor the situation closely, particularly as winter approaches and demand for heating fuel and gas typically rises.

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