Branded ghee and oil latest price in Pakistan

Branded ghee and cooking oil prices have increased by Rs80 to Rs100 per kg/litre, now reaching Rs570.

Retailers note that the price hike is particularly noticeable in large, well-known brands. The price increase is linked to fluctuations in the global palm oil market. Initially, palm oil prices surged to $1,285 per tonne but later decreased to $1,185, which brought the cost of palm oil in Pakistan’s open market down to Rs16,500 per maund from Rs19,000.

As a result of these fluctuations, smaller and medium-sized companies who hold a larger share of the market have reduced their prices by Rs40 per kg/litre. However, branded companies, especially those with extensive advertising and distribution networks, usually take longer to adjust their prices. These companies are expected to gradually lower their prices as well.

Pakistan imports 90% of its palm oil from Indonesia and 10% from Malaysia. The country consumes about 5 million tonnes of ghee and cooking oil annually, importing 3.5 million tonnes of palm oil each year. In the first five months of FY24, Pakistan imported 1.319 million tonnes of palm oil, valued at $1.26 billion, marking an increase compared to the same period last year.

To address the rising costs, the Pakistan Vanaspati Manufacturers Association (PVMA) met with Malaysia’s Consul General, urging a reduction in Malaysia’s export duty on palm oil to Pakistan. A lower export duty would help enhance trade relations between the two countries and support Pakistan’s palm oil industry.