Cooking oil, ghee prices increased in Pakistan

Prices of ghee and cooking oil have increased up to Rs80 per kg in Pakistan due to a surge in global prices, ARY News reported on Tuesday.

Reports indicate that essential commodities have jumped by Rs20 to Rs80 per kilogram, primarily due to a steep increase in palm oil prices on the international market.

The price of palm oil prices have escalated from $900 to $1,200 per ton, marking a staggering rise of $300 recently.

This dramatic surge is attributed to various global market dynamics, compelling local manufacturers to reconsider pricing strategies in light of the increasing costs of raw materials.

On the other hand, manufacturers are seeking tax reductions, currently pegged at Rs100 per kilogram for ghee and oil, as they strive to maintain affordability in the face of rising expenses.

Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Umer Rehan said the government charges an average of Rs9,500 per tonne as customs duty on the import of palm oil and palm olein.

From imports to sale stages, the tax incidence comes to Rs100 per kg/litre in ghee and cooking oil, of which Rs60 is general sales tax.

As the prices surged, cooking oil manufacturers and dealers have requested the government to cut taxes on these products to alleviate the burden on consumers.