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Ghee, oil prices raised by Rs12/kg

KARACHI: While the rates of ghee and cooking oil continue to climb a leading manufacturer has again pushed up the rate of five kg/litre ghee and cooking oil tin on Wednesday to Rs895 from Rs835, a hike of Rs12 per kg.

According to Karachi Retail Grocers Group general secretary Farid Qureishi five-litre ghee and cooking oil tin was available at Rs795 in the middle of November. The one kg pouch of ghee now sells at Rs177 at retail as compared to Rs165 earlier.

He added that 16-kg ghee tin is now priced at Rs2,440 as compared to Rs2,400 on Tuesday. Last month, the rate of 16-kg tin had risen by Rs100.

Chairman Pakistan Vanaspati Manufacturers Association (PVMA) Shaikh Mohammad Ikram also confirmed to Dawn that the maker of Dalda ghee and oil had pushed up the rates. When asked that why PVMA did not take any action against the leading players for pushing up the rate, he said the association cannot force the companies on price issue.

He said in Punjab the 16-kg ghee and cooking oil tin price now hovers between Rs2,400-2,450, which was Rs2,250 some 10 days back.

Linking the domestic prices to rising palm oil price in world markets, he said that currently, the palm oil rate is $1,200 per ton (C&F Karachi) as compared to $1,120 in November and $920 in October.

He predicted an increase of Rs10 per kg more in case the shipments booked on $1,200 per ton arrives in January.

“The government is pocketing around Rs30 per kg/litre on ghee and cooking oil in terms of taxes and duties if $1,100 per ton rate of global palm oil is taken into account,” he said, adding that Rs1,000 per ton federal excise duty and Rs9,100 per ton customs duty are fixed, while the government`s earning varies on changes in edible oil imports based on 16 per cent sales tax and three per cent income tax.

The government will earn Rs32 per kg when the shipment booked at $1,200 per ton will arrive next month.

On the proposed implementation of the reformed general sales tax (RGST) Shaikh Ikram said the consumers will see only Re one per kg/litre decline in prices in case the RGST is reduced to 15 per cent from 16 per cent.

The PVMA has already urged the government to cut the RGST and other taxes if it wants to provide relief to the consumers.

The PVMA chairman said due to rising cost of living on surging food and utility bills rates, one kg pouch now forms 80 per cent share in total sales of ghee and cooking oil. Five years back, tinned products were enjoying 80 per cent market share, while one kg pouch`s share was only 20 per cent.

He said that around 20,000-25,000 tons of edible oil products are also being exported to Afghanistan every month in which ghee holds 90 per cent share.

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