raising prices of cooking oils in Pakistan
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The government stunned customers on Tuesday by raising ghee and cooking oil prices by an extraordinary Rs208 and Rs213 to an all-time even though “these rates still do not occur in retail markets,” at Rs555 per kilogram and Rs605 per liter, respectively.

Why did the cooking oil price increase

Cooking Oil News From Karachi

A spokesman from the Utilities Stores Company (USC) in Karachi confirmed to Dawn that the USC had issued a warning of a huge hike in ghee and cooking oil (cost of sunflower oil) prices that took effect on June 1.

The official, however, did not remark on why the charges had been jacked up so ruthlessly, causing customers to suffer greatly.

In retail stores, the maximum prices of ghee and cooking of known brands remain between Rs540-560 per kg/liter.

Utility Stores

“Ghee and cooking oil would be sold at utility stores for Rs555 and Rs605, respectively, which are more than retail pricing.'”

However, Umer Islam Khan, Secretary-General of the Pakistan Vanaspati Manufacturers Association (PVMA), suggested that retail ghee and cooking oil costs will soon match USC prices

He stated that ghee/cooking oil makers had ceased providing items on credit to the USC since the company has not cleared arrears of Rs2-3 billion to the manufacturers.

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Mr. Umer stated why did cooking oil prices increase!

“The Prime Minister Task Force Committee on Palm Oil Supply, comprised of officials from key ministries and PVMA office-bearers, has been having daily zoom sessions to assess the demand and supply situation for palm oil.”

He stated that around 160,000 tonnes of palm oil stockpiles are available in Karachi’s twin ports, which is enough for three weeks of consumption. Despite Indonesia easing its prohibition on palm oil exports on May 23, not a single loaded vessel has been on the high seas or at an Indonesian port for supplies to Pakistan.

However, the PVMA had urged that the government abolish a 2% extra customs levy on the import of Malaysian palm oil to balance the high cost of Malaysian palm oil, which is 15-20% more expensive than Indonesian palm oil.

Around 87 % of Pakistan’s total palm oil imports come from Indonesia, with the remainder coming from Malaysia.

When questioned why ghee and cooking oil prices did not reduce despite a decline in Indonesian palm oil prices to $1,700 per tonne from $1,900-2,000 two months ago, Mr. Umer said shipments were booked at higher rates, and a big rupee depreciation added to to to the landing cost.

Commenting on growing freight prices, he said the PVMA had informed its members in a circular on May 27 to pay the transportation expenses for their edible oil consignments to NLC/private tankers with a rise of just 22.50 Liter and an Rs30 increase in diesel to Rs174.67 per liter. The transportation fee increase applies to both upcountry and Karachi deliveries of edible oil.

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