Expected Ghee, Cooking Oil Prices in Pakistan After Budget 2024–25

• Ghee and cooking oil are popular food items in Lahore and across Pakistan.
• Both ghee and cooking oil experienced a significant price decrease.
• Expectations suggest that prices of cooking oil and ghee will rise after budget 2024-25.

In Lahore, ghee and cooking oil are highly consumed food items in Pakistan, and their prices have decreased in recent weeks due to reduced inflation, influenced by actions from the new government.

Both items saw a significant price drop of up to Rs75 per kilogram, providing relief to the country’s population affected by inflation.

The prices of cooking oil and ghee are likely to increase after the federal budget for the fiscal year 2024–25, as the government has proposed several taxes in compliance with IMF conditions.

The government plans to implement new taxes or raise current tax rates to generate additional revenue of Rs 2,000 billion in the upcoming fiscal year.

News sources indicate that the government may raise the sales tax rate by one percent to gather more revenue from taxes. If this proposal goes through, it could lead to increased inflation, impacting the prices of cooking oil and ghee in Pakistan.

Current cooking oil and ghee prices in Pakistan

Following recent adjustments, Brand A cooking oil is now priced at Rs 525 per liter, down by Rs 75, and Brand A ghee has also been reduced by Rs 25.

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The prices of Brand B ghee and cooking oil have decreased to Rs 380 per liter, marking a reduction of Rs 70.

Expected Cooking Oil and Ghee Prices in July 2024

Once approved by parliament, the new budget proposals will take effect in July 2024. If the proposed 1% increase in sales tax is approved, it will lead to a corresponding increase in ghee and cooking oil prices.