ISLAMABAD: Amid rising inflation, Pakistan has seen a sharp increase in the prices of ghee and cooking oil, with certain branded products witnessing a hike of up to Rs100 per litre. Retailers confirmed that the prices of branded cooking oil and ghee have now reached Rs570 per litre, following an average rise of Rs80 per kg/litre.
Pakistan heavily relies on imports for its palm oil needs, sourcing 90% from Indonesia and 10% from Malaysia. The country consumes about 5 million tons of ghee and cooking oil annually, with approximately 3.5 million tons of palm oil imported to meet domestic demand.
Data from the Pakistan Bureau of Statistics shows 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, up from 1.248 million tons valued at $1.17 billion during the same period last year. The average price per ton has increased slightly, from $941 to $954.
Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), explained that the price hike is largely due to fluctuations in international palm oil prices, which surged to $1,285 per ton before settling at $1,185. This drop led to a reduction in the open market price of palm oil from Rs19,000 to Rs16,500 per mound.
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Although smaller and medium-sized manufacturers have adjusted their prices downwards by Rs40 per kg/litre, larger brands, which hold a smaller share of the market, have been slower to reduce prices due to their extensive marketing and distribution networks.
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