Islamabad, Dec 20: The prices of branded ghee and cooking oil have increased, despite a decline in the cost of imported palm oil.
Retailers report that the price of branded ghee and cooking oil has risen by Rs. 80 per kg/litre, now reaching Rs. 570, while some major brands have increased prices by up to Rs. 100 per kg/litre, according to a national daily.
Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), explained that global palm oil prices, which had peaked at $1,285 per tonne, have now dropped to $1,185 per tonne. This reduction has lowered the local market price of palm oil from Rs. 19,000 to Rs. 16,500 per maund. Consequently, smaller and medium-sized manufacturers, who dominate the market, have decreased ghee and cooking oil prices by Rs. 40 per kg/litre after an earlier Rs. 80 hikes. However, branded products, which represent only 5% of the market, have not yet adjusted their prices.
Rehan attributed this delay to the lengthy processes of printing, distribution, and marketing, adding that prices for branded products would eventually decline.
Pakistan depends heavily on palm oil imports, with 90% sourced from Indonesia and 10% from Malaysia. The country consumes approximately five million tonnes of ghee and cooking oil annually, necessitating 3.5 million tonnes of palm oil imports.
During the first five months of FY24, Pakistan imported 1.319 million tonnes of palm oil worth $1.26 billion, compared to 1.248 million tonnes valued at $1.17 billion during the same period last year. The average price per tonne increased slightly from $941 to $954.
