In recent weeks, Pakistani consumers have felt the impact of rising costs on essential items like cooking oil and ghee. While the Utility Stores Corporation (USC) has reduced sugar prices slightly, the price surge in other basic commodities keeps adding pressure on household budgets. This article explores the recent changes in cooking oil and ghee prices, provides a comparison of popular brands, and examines what the future might hold for these essential goods.
Sharp Increases in Oil and Ghee Prices
The past few days have seen a sharp rise in the prices of both first-grade and second-grade oil and ghee:
- First-Grade Oil and Ghee: Prices increased by 54 to 60 PKR per kilogram, pushing the cost of first-grade oil from 505 PKR to 559 PKR per kilogram.
- Second-Grade Oil and Ghee: Similarly, second-grade options have risen significantly. Second-grade ghee, for example, has jumped from 440 PKR to 500 PKR, and second-grade oil has increased from 452 PKR to 512 PKR per liter. In some locations, consumers are paying as much as 530-540 PKR per liter for second-grade oil.
These increases are primarily driven by global supply chain disruptions, higher import costs, and economic pressures affecting production and distribution.
Comparison of Popular Brands’ Prices
Below is a comparison of the current prices for some of the most popular cooking oil and ghee brands in Pakistan. Prices vary by region and store, but these numbers give an idea of the overall market trend.
| Brand | Type | Previous Price (PKR/kg or L) | New Price (PKR/kg or L) | Price Increase (PKR) |
|---|---|---|---|---|
| Dalda | First-Grade Oil | 505 | 559 | 54 |
| Dalda | Second-Grade Oil | 452 | 512 | 60 |
| Sufi | First-Grade Ghee | 505 | 559 | 54 |
| Sufi | Second-Grade Ghee | 440 | 500 | 60 |
| Meezan | First-Grade Oil | 510 | 565 | 55 |
| Meezan | Second-Grade Oil | 455 | 520 | 65 |
| Habib | First-Grade Ghee | 507 | 562 | 55 |
| Habib | Second-Grade Ghee | 445 | 505 | 60 |
Note: Prices may vary based on location and retailer.
USC’s Sugar Price Reduction: A Small Relief
Amid the steep rise in cooking oil and ghee prices, USC recently announced a small relief for consumers by reducing sugar prices by 13 PKR per kilogram. This brings the cost of sugar down from 153 PKR to 140 PKR per kilogram.
This reduction was made possible after negotiations with sugar mill owners, who agreed to a 17 PKR reduction per kilogram. Although USC incurred additional costs, it passed on this price relief to benefit consumers.
Impacts on Household Budgets
The rise in oil and ghee prices, alongside only a small relief in sugar prices, means that consumers, especially those with limited budgets, will continue to feel the pressure. Here’s what these changes mean for daily life:
- Strained Budgets: With cooking oil and ghee being everyday essentials, households will need to allocate more money to cover these items, potentially sacrificing other needs.
- Shifts in Purchasing Choices: Many families may turn to cheaper alternatives, or reduce their use of cooking oil and ghee, to manage costs.
- Greater Impact on Low-Income Families: The price surge has a disproportionate impact on low-income households, who are already managing tight budgets.
Future Price Forecast for Oil and Ghee
Several factors indicate that prices for oil and ghee may remain high in the coming months. Here’s what to expect:
- Short-Term (Next 3 Months): Prices may stay elevated or increase further by 5-10% due to seasonal demand and continued supply chain issues.
- Mid-Term (6-12 Months): Stabilization could occur if global supply improves and the rupee stabilizes. However, further price rises are possible if import costs increase.
- Long-Term (Beyond 12 Months): A more stable price outlook depends on economic recovery and government policies. Increased local production of oil seeds, if achieved, could eventually bring down prices.
Key Influencing Factors
- Global Supply Chain Issues: Persistent supply disruptions are keeping raw material costs high globally.
- Currency Fluctuations: A weakening rupee against the dollar could drive prices even higher due to increased import costs.
- Seasonal Demand: Winter typically brings higher demand for ghee, which could push prices up even more.
- Government Intervention: Policy measures, such as subsidies, may help in the short term but may not be enough to counterbalance the rising import costs.
Conclusion
Rising oil and ghee prices are stretching budgets and impacting families across Pakistan, especially those in low- to middle-income brackets. The recent sugar price reduction from USC is a positive, but small, step towards easing some of this pressure. Without significant changes to global supply chains, economic stability, or local production efforts, however, the high prices of cooking oil and ghee are expected to continue, impacting household budgets for the foreseeable future.
For families and policymakers alike, it’s essential to stay informed and explore options that can help ease the financial burden of these essential goods in the long run.
