Ghee and cooking oil prices have increased recently, hitting household budgets hard. This jump of around Rs40 to Rs50 per kilogram comes as a direct result of rising international palm oil prices. In just two months, palm oil has spiked from $900 to $1,200 per ton, pushing local producers to raise prices to cope with this added cost.
The surge, driven by complex global market dynamics, leaves local manufacturers in a tough spot. With the cost of raw materials rising sharply, they’ve been forced to reevaluate pricing strategies. As prices continue to climb, manufacturers are asking the government for tax relief. Currently, taxes on ghee and cooking oil stand at about Rs100 per kilogram, out of which Rs60 is general sales tax.
Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Umer Rehan noted that the government collects an average of Rs9,500 per ton as customs duty on palm oil imports. With Pakistan importing nearly 3.2 million tons annually to meet the local demand of 4.5 million tons, the impact of international price hikes has been severe.
Manufacturers and dealers are calling on the government to reconsider these heavy taxes to help consumers cope with the rising prices.
