ISLAMABAD: Amid rising inflation, ghee and cooking oil prices have surged significantly, with some branded products experiencing an increase of up to Rs100 per litre.
Retailers have confirmed that the prices of branded cooking oil and ghee now stand at Rs570 per litre, reflecting an average rise of Rs80 per kg or litre.
Pakistan imports 90% of its palm oil requirements from Indonesia and 10% from Malaysia, consuming approximately 5 million tons of ghee and cooking oil annually. Of this demand, around 3.5 million tons of palm oil are imported to meet local needs.
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. This is a rise compared to the 1.248 million tons valued at $1.17 billion imported during the same period last year. The average price per ton has marginally increased to $954 from $941 a year earlier.
Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), linked the price hike to fluctuations in global markets. “Global palm oil prices surged to $1,285 per ton before settling at $1,185. This also resulted in a reduction in the open market price of palm oil from Rs19,000 to Rs16,500 per mound,” he explained.
Despite these adjustments, smaller and medium-sized manufacturers—who dominate the market—have already reduced prices by Rs40 per kg or litre. However, larger brands, which account for only 5% of the market share, have been slower to lower prices due to their extensive marketing and distribution networks.
