Amid ongoing inflationary pressures, the prices of ghee and cooking oil in Pakistan have seen a significant increase, with some branded products rising by as much as Rs100 per liter. Retailers confirmed that the price of branded cooking oil and ghee has now reached Rs570 per liter, following an average increase of Rs80 per kg/liter.
Pakistan, which imports 90% of its palm oil 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 reveals that during the first five months of the fiscal year 2024, Pakistan imported 1.319 million tons of palm oil, worth $1.26 billion. This represents an increase from the 1.248 million tons valued at $1.17 billion during the same period last year. The average price per ton has risen slightly 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 global markets. “Global palm oil prices surged to $1,285 per ton before settling at $1,185, which also led to a reduction in the open market price of palm oil from Rs19,000 to Rs16,500 per mound,” he said.
While smaller and medium-sized manufacturers, who dominate the market, have reduced prices by Rs40 per kg/liter, larger brands—accounting for 5% of the market share—have been slower to implement price cuts due to their extensive marketing and distribution networks.
Meanwhile, in Chaman, the prices of vegetables have soared, creating further financial strain on residents. Market reports indicated that peas were being sold at Rs350 per kilogram, okra at Rs320 per kilogram, and potatoes and tomatoes at Rs120 and Rs200 per kilogram, respectively.
The sudden price hikes have left citizens struggling to meet their daily needs, with many expressing concerns over the rising cost of living.
