The Federal Board of Revenue (FBR) has fixed minimum retail prices for ghee and cooking oil. The move aims to reduce tax evasion.
The new pricing system will help the government collect sales tax from manufacturers more effectively. It covers locally produced vegetable and animal fats, oils, ghee and cooking oil.
FBR Introduces New Pricing Formula
Under the new notification, manufacturers will pay sales tax based on the notified minimum prices.
The FBR will calculate the minimum price using the average national retail price from the previous month. Officials will deduct Rs. 25 per kilogram from that average.
However, registered manufacturers must follow FBR digital invoicing and production monitoring systems to receive this Rs. 25 relief.
Three Categories Set for Brands
The FBR has placed ghee and cooking oil brands into three categories.
Category A includes Dalda, Habib, Sufi, Mezan, Soya Supreme and Eva. Their minimum price equals 100% of the average national retail price.
Category B includes Manpasand, Habib Handi, Seasons, Kashmir, Kausar, Shah Taj, Kisan, Shafaq and Sultan. Their minimum price stands at 93%.
Category C covers all other brands. Their minimum price stands at 85% of the average national retail price.
September Prices Announced
The average national retail price stood at Rs. 613 per litre or kilogram for August 2026. After the Rs. 25 deduction, the base price reached Rs. 588.
For September, the minimum prices are:
- Category A: Rs. 588 per litre/kg
- Category B: Rs. 547 per litre/kg
- Category C: Rs. 500 per litre/kg
The FBR will apply the same formula in coming months. If manufacturers sell products above the notified minimum, they must pay sales tax on the higher selling price.
The notification will remain effective until the November 2026 tax period.
