Amid inflationary pressures, the prices of ghee and cooking oil in Pakistan have witnessed a significant hike, with some branded products seeing an increase of up to Rs100 per litre.Retailers confirmed that branded cooking oil and ghee prices now stand at Rs570 per litre, following an average rise of Rs80 per kg/litre. The country, which imports 90% of its palm oil requirements from Indonesia and 10% from Malaysia, consumes approximately 5 million tons of ghee and cooking oil annually. Of this, around 3.5 million tons of palm oil are imported to meet local demand.

Data from the Pakistan Bureau of Statistics indicates that during the first five months of the fiscal year 2024, the country imported 1.319 million tons of palm oil worth $1.26 billion. This marks an increase from the 1.248 million tons valued at $1.17 billion imported during the same period last year. The average price per ton has risen marginally to $954, compared to $941 in the previous year. Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), attributed the price hike to fluctuations in international markets.

“Global palm oil prices had surged to $1,285 per ton before settling at $1,185. This also led to a reduction in the open market price of palm oil from Rs19,000 to Rs16,500 per mound,” he said. Despite these adjustments, smaller and medium-sized manufacturers, who dominate the market, have already reduced prices by Rs40 per kg/liter. However, larger brands—which account for 5% of the market share—have been slower to implement price cuts due to their extensive marketing and distribution networks.

Credit: Independent News Pakistan (INP)