Cooking oil, ghee prices unchanged in Pakistan despite global drop

KARACHI: The prices of cooking oil and ghee remained unchanged in Pakistan despite a drop in the global market, ARY News reported on Monday.

Local markets in Pakistan have kept the prices of cooking oil and ghee unchanged despite a global drop of $110 per tonne within a month. The local and branded companies retained the previous prices of the edible oil and ghee as compared to the global rates.

Vanaspati Association Mahmood Molvi said that the companies were selling ghee at the price of Rs15,100 per maund which was reduced to Rs11,900 after a cut of Rs3,000.

“Ex-mill rates were already reduced but the retailers have not decreased the prices due to the negligence of the local administration. The local administration must take notice on the matter. The local market has reduced the prices by 20%.”

The former vice chairman of Pakistan Vanaspati Manufacturers Association Umar Rehan Shaikh claimed that at least Rs80 per kilogram was reduced on ghee and elible oil prices. “If Pakistani rupee further strengthens, the edible oil and ghee prices would be reduced.”

He added that the prices of the products were reduced by Rs38 per kilogram, whereas, the rates were further decreased by Rs42 per kg after rupee strengthened against the US dollar.

On the other hand, Umar Rehan Shaikh said that the price of edible oil in the global market was $960 per tonne last month which was reduced to $850 per tonne after a decrease of $110.

Shaikh further said that ex-mill rate of ghee was fixed at Rs360 per kg and Rs380 per kg for cooking oil. He detailed that the annual consumption of ghee and cooking oil of Pakistan is 4.2 million tonnes, whereas, the country has a stock of over 500,000 tonnes of palm oil. Shaikh said that the demand was significantly reduced due to inflation.

Molvi added that Pakistan has imported stocks of wheat due to a shortage which cost Rs92 per kg to the importers. “The flour should be sold at the price of Rs120 per kg after the wheat import at lower prices. However, the flour is being sold at Rs135 per kg in the local market.”