Pakistan: With economy crashing, cooking oil, ghee prices soar to all-time high

Islamabad [Pakistan], June 1 (ANI): The Pakistan government increased the rates of ghee and cooking oil by an unprecedented Rs 208 and Rs 213 to be effective from Wednesday. The announcement came as a complete shock to the nation as the country continues to struggle with the economic crisis.
An official of Utility Stores Corporation (USC) confirmed that with this surge, the price of food oil and ghee would be at an all-time high of Rs 555 per kg and Rs 605 per litre, which was Rs 540-560 per kg in the retail market.
"USC had issued a notification of this whooping jump in ghee and cooking oil rates effective June 1," a Pakistani Newspaper Dawn reported citing the USC official, however, the reason for the increase was not specified.
According to the Secretary-General of Pakistan Vanaspati Manufacturers Association (PVMA), Umer Islam Khan, the retail rates of ghee and cooking oil would soon come on a par with USC prices, the Dawn reported.
He said that the manufacturers of cooking oil and ghee have stopped giving the products on credit to the USC as the corporation had not cleared outstanding Rs 2-3 billion to the manufacturers.
Speaking of the Supply of Palm Oil from Indonesia to Pakistan, Umer Islam said, "Prime Minister Task Force Committee on Supply of Palm Oil comprising officials of relevant ministries and PVMA office-bearers has been holding daily zoom meetings to analyse the demand and supply situation of palm oil. Despite the lifting of an export ban by Indonesia on palm oil on May 23, not a single loaded vessel had been on the high seas or at Indonesia port for shipments to Pakistan," the Dawn reported.
He said that the shipments booked on higher rates and a massive rupee devaluation further raised the landing cost because of which ghee and cooking oil rates did not fall despite a drop in Indonesian palm oil rate to USD 1,700 from USD 1,900-2,000 per tonne two months back.
"The PVMA in its circular on May 27 had intimated its members to pay the transportation charges for their edible oil consignments to NLC/private tankers with an increase of only 22.50 per cent after a jump of Rs 30 in diesel to Rs 174.67 per litre. The increase in transportation charges is applicable on both upcountry and Karachi delivery of edible oil," said Umer Islam. (ANI)