Govt hikes price of cooking oil by Rs213
The government has increased the prices of ghee and cooking oil by an unprecedented Rs208 and Rs213 to an all-time high of Rs555 per kg and Rs605 per litre, respectively.
According to the sources, ghee and oil are not being sold at this price in the retail market yet.
An official of the Utility Store Corporation (USC) confirmed that the USC had issued a notification in Karachi stating that the hike in ghee and oil prices would take effect from June 1.
However, the official did not comment on why the prices were increased so ruthlessly that consumers would be severely affected.
The prices of ghee and oil of famous brands are still high in the markets. In the retail market, branded ghee and oil are being sold at Rs540 to Rs560 per liter.
General Secretary of Vanaspati Manufacturers Association (PVMA) Umar Islam Khan has hinted that retail prices of ghee and oil will soon come in line with USC prices.
He said that ghee and edible oil manufacturers have stopped supplying products to USC on credit as the corporation has not paid Rs2-3 billion to the manufacturer.
He said that since the ban on palm oil exports by Indonesia from May 23, not a single ship from Pakistan had gone to the sea or port of Indonesia. However, both the ports of Karachi have a reserve of 160,000 tons of palm oil, which is enough for three weeks’ consumption.
The PVMA has asked the government to remove the 2% additional duty on palm oil imports from Malaysia to deal with the extra Malaysian palm oil prices which are 15 to 20% higher than Indonesia.
In Pakistan, 87% of palm oil is exported from Indonesia, while the rest is exported from Malaysia to meet demand.