Pakistan raises vegetable oil prices following fuel cost increase

The Government of Pakistan has increased prices for vegetable oil and ghee sold through the state-owned Utility Stores Corporation (USC). The price of ghee rose by 208 Pakistani rupees (about $0.75), while vegetable cooking oil increased by 213 Pakistani rupees (about $0.77) per kilogram or liter. The move follows higher fuel prices, which have increased production and transportation costs.

According to industry representatives, similar price increases are expected soon in the retail market. Manufacturers have suspended credit supplies to USC because the state-owned retailer owes them an estimated PKR 2–3 bln in outstanding payments.

Pakistan’s heavy reliance on imported palm oil is adding to market pressure. About 87% of the country’s palm oil imports come from Indonesia, with the remainder supplied by Malaysia. Although Indonesia has lifted its temporary export ban on palm oil, new shipments to Pakistan have yet to begin. Meanwhile, stocks at Karachi ports total around 160,000 tons, enough to cover approximately three weeks of domestic consumption.

The Pakistan Vanaspati Manufacturers Association (PVMA) has urged the government to abolish the additional 2% import duty on Malaysian palm oil to help offset its higher cost compared with Indonesian supplies. According to the association, Malaysian palm oil is currently 15–20% more expensive.

Despite the recent decline in global Indonesian palm oil prices, producers say domestic prices in Pakistan remain elevated due to previously contracted high-priced imports, depreciation of the Pakistani rupee, and rising transportation costs. The situation highlights the vulnerability of Pakistan’s vegetable oil market to fluctuations in global commodity prices, exchange rates, and logistics costs.

Tags: prices, Pakistan, edible oils