Despite a decline in global palm oil prices, the rates of branded ghee and cooking oil in Pakistan have surged by up to Rs100 per kilogram (kg). Prominent brands have increased prices to Rs570 per kg/litre, with some retailers reporting hikes of Rs80 to Rs100 per kg/litre.
According to the Pakistan Vanaspati Manufacturers Association (PVMA) Chairman, Sheikh Umer Rehan, palm oil prices in the international market have dropped by $100, settling at $1,185 per tonne. Consequently, the cost in Pakistan’s open market has decreased by Rs2,500 per maund to Rs16,500.
Smaller and medium-sized brands, which hold a significant share of the market, have slightly adjusted their prices, dropping by Rs40 per kg/litre after an initial increase of Rs80.
However, major branded products have yet to reduce prices. The PVMA chairman explained this delay, citing the time required for printing, distribution, and marketing adjustments, and assured that prices would decline gradually.
Pakistan imports 3.5 million tonnes of its annual palm oil demand of five million tonnes, with 90% coming from Indonesia and 10% from Malaysia.
During the first five months of FY24, the country imported 1.319 million tonnes of palm oil worth $1.26 billion, compared to 1.248 million tonnes worth $1.17 billion in the same period last year.
The disparity between international and local prices continues to burden consumers, but gradual adjustments are anticipated in the coming weeks.
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