Pakistan’s cooking oil and ghee prices remain unchanged despite the global market witnessing a drop.
With the global oil price drop of $110 per tonne over a month, local and branded companies in Pakistan maintained previous prices for these essential commodities.
Ghee was once sold at Rs15,100 per maund; it dropped to Rs11,900, showing a reduction of Rs3,000. Interestingly, while ex-mill rates were lowered, retail prices remained stagnant, pointing towards negligence by local administrative bodies. The local administration addressed the situation, mentioning a price drop of 20% in the local market.
The Pakistan Vanaspati Manufacturers Association remarked a decline of at least Rs80 per kilogram in ghee and edible oil prices. The association also indicates potential reductions if the Pakistani rupee strengthens, a price reduction of Rs38 per kilogram on these products and an additional Rs42 per kg decrease as the rupee gains strength against the US dollar. Last month, the global market priced edible oil at $960 per tonne, which dipped to $850 per tonne, reflecting a $110 decrease.
Ghee stands at Rs360 per kg, and Rs380 per kg for cooking oil. With an annual consumption of around 4.2 million tonnes of ghee and cooking oil, Pakistan presently holds a stock of over 500,000 tonnes of palm oil. Due to inflation, the demand for these commodities has decreased.
Impact on Other Commodities
Pakistan has been importing wheat to bridge a shortage, costing importers Rs92 per kg. The expectation was to sell flour at Rs120 per kg post-imports, but it’s currently being sold at Rs135 per kg in local markets.