Cooking oil being sold at high prices after duty slashed

By Muhammad YaseenPublished On 05 Jan 2023

Stern action should be taken against those who failed to make ghee and cooking oil cheaper in Pakistan, the Ministry of Industries and Production said on Tuesday.

It wrote a letter to the Competition Commission of Pakistan (CCP) saying that some factory owners have failed to reduce the price of these essential products.

Cooking oil is currently being sold for Rs220 to Rs250 per kg in Pakistani markets, while ghee for Rs200 to Rs220.

The factory owners had agreed earlier to reduce prices by Rs50 per kg during talks with MoIP but they didn’t keep their promise, the ministry said.

The price reduction was suggested because the Federal Board of Revenue has abolished the 2% additional customs duty on palm oil imports after the emergence of Covid-19 till June 30, but the benefit of the reduction has not been passed on to the public.

Moreover, according to an assessment made by MoIP, palm oil has become cheaper by $277 per tonne in the global market. The price of palm oil in the global market has come down from $789 per tonne to $512.

According to the ministry’s estimate, the price of ghee and oil should have been reduced by Rs50 per kg so that the consumers would have benefitted.

Prime Minister Imran Khan had directed steps authorities to reduce the price of ghee and oil during Ramazan. The prices, however, were never reduced.