Prices of ghee and cooking oil have increased significantly in recent weeks due to a surge in global prices, Hum News reported on Tuesday.
The report indicated that these essential commodities have jumped by Rs40 to Rs50 per kilogram, primarily due to a steep increase in palm oil prices on the international market.
“In just two months, palm oil prices have escalated from $900 to $1,200 per ton, marking a staggering rise of $300,” the report added.
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.
Pakistan, which imports approximately 3.2 million tons of palm oil annually to meet a national demand of 4.5 million tons, is particularly vulnerable to fluctuations in global prices, the report concluded.
