Business Desk 
Dec 20, 2024
While the rates of palm oil in the international market are witnessing a downfall, the rates of branded ghee and oil in Pakistan have surged as much as Rs100 per kilogram (kg).
The prices of branded ghee and cooking oil have shot up by Rs80 per kg/litre to Rs570, with some more prominent brands observing a Rs100 hike per kg/litre, Dawn reported while citing a retailer.
Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Umer Rehan, explaining the price differences in local and international markets, noted that the rate of palm oil in the world market has settled at $1,185 per tonne after registering a $100 drop. As a result, the cost of palm oil in the open market dipped by Rs2,500 per maund to settle at Rs16,500.
In line with price fluctuations, the prices of ghee and cooking oil, after witnessing a surge of Rs80, dropped by Rs40 per kg/litre by small and medium-sized players holding substantial market shares.
The PVMA chairman attributed the delayed price adjustments by oil and ghee brands, mostly advertised on TV, to the time required for their printing, distribution and marketing networks. “Branded ghee and cooking oil prices would also drop gradually,” he claimed.
It's worth mentioning that 3.5m tonnes of Pakistan's annual total palm oil need, which stands at five million tonnes per annum, is imported. Of all, 90% of total palm oil comes from Indonesia with the remaining 10% arriving from Malaysia.
Pakistan imported 1.319m tonnes ($1.26bn) of palm oil during the first five months of FY24 compared to 1.248m tonnes ($1.17bn) in the corresponding period of last year.
