KARACHI: The government on Tuesday surprised consumers by increasing the prices of ghee and cooking oil by an unprecedented Rs 208 and Rs 213, reaching an all-time high of Rs 555 per kg and Rs 605 per liter respectively, even though The same “these rates” are still there. The retail market doesn’t exist.”
An official at the Utility Stores Corporation (USC) in Karachi confirmed to Dawn that USC had notified this sharp jump in ghee and cooking oil rates effective June 1.
However, the official did not comment on why the rates were hiked so ruthlessly, which would have a negative impact on consumers.
The maximum rate of cooking and ghee of well-known brands in the retail markets is still between Rs 540-560 per kg/litre.
Utility stores will start selling ghee and cooking oil for Rs 555 and Rs 605 respectively; Exceeding ‘retail rates’
However, Pakistan Vegetable Manufacturers Association (PVMA) general secretary Umar Islam Khan indicated that the retail rates of ghee and cooking oil will soon be at par with USC prices.
He said that the Ghee/Cooking Oil manufacturers have stopped giving the product on credit to USC as the Corporation has not paid dues of Rs 2-3 billion to the manufacturers.
Mr. Omar said that the Prime Minister’s Task Force Committee on Palm Oil Supply, consisting of officials from the relevant ministries and office-bearers of PVMA, is holding daily Zoom meetings to analyze the palm oil demand and supply situation. .
The twin ports of Karachi have about 160,000 tonnes of palm oil reserves, which is enough for three weeks of consumption, he said. Despite Indonesia lifting export restrictions on palm oil on 23 May, not a single loaded ship was on the high seas or Indonesia port for shipment to Pakistan.
However, the PVMA had requested the government to remove an additional 2 per cent customs duty on palm oil imports from Malaysia to compensate for the higher cost of Malaysian palm oil, which is 15-20 per cent costlier than Indonesia.
About 87 percent of Pakistan’s total palm oil imports come from Indonesia and the rest from Malaysia.
Asked why ghee and cooking oil prices did not fall despite Indonesian palm oil prices falling from $1,900-2,000 a tonne to $1,700 two months ago, Mr. Omar said shipments were booked at higher rates. And the huge rupee depreciation further pushed up the landing cost. ,
Commenting on the rising freight charges, he said that PVMA in its circular dated May 27 has asked its members to pay transportation charges for their edible oil consignments to NLCs/private tankers with an increase of only 22.50 pc . was informed for. 30 bucks jump 174.67 per liter in diesel. The hike in transportation charges is applicable for both upcountry and Karachi delivery of edible oil.
Published in Dawn, June 1, 2022