Pakistan following Sri Lanka's footsteps? Cooking oil, ghee witness massive price hike
According to a Utility Stores Corporation (USC) official, the price of edible oil and ghee has reached an all-time high of Rs 555 per kg and Rs 605 per litre. "USC has issued a notification of this whopping hike in ghee and cooking oil costs from June 1," a USC official told the local Dawn daily.
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FollowIn the midst of a worsening economic crisis and fears that the country could follow Sri Lanka's lead, Pakistanis were given a fresh dose of shock on Wednesday when ghee and cooking oil prices were announced at an all-time high. Ghee and cooking oil prices have been hiked by Rs 208 and Rs 213 respectively, with effect today.
According to a Utility Stores Corporation (USC) official, the price of edible oil and ghee has reached an all-time high of Rs 555 per kg and Rs 605 per litre. "USC has issued a notification of this whopping hike in ghee and cooking oil costs from June 1," a USC official told the local Dawn daily.
The Pakistani government or USC have not stated the cause for the price increase.
Also Read | Sri Lanka economic crisis: Story of the great Chinese betrayal
According to Dawn, Umer Islam Khan, Secretary-General of Pakistan Vanaspati Manufacturers Association (PVMA), retail pricing of ghee and cooking oil would soon be comparable to USC rates. According to Umer Islam, the USC still owes the makers of cooking oil and ghee Rs 2-3 billion, and the latter have ceased delivering supplies to the USC on credit.
He also brought up the problem of Indonesian palm oil supply disruption. "The Prime Minister Task Force Committee on Palm Oil Supply, comprised of key ministry officials and PVMA office-bearers, has been having daily zoom sessions to analyse the demand and supply situation for palm oil. Despite Indonesia lifted its restriction on palm oil exports on May 23, not a single loaded vessel has been on the high seas or at an Indonesian port for shipments to Pakistan," according to the Dawn, Umer Islam stated.
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He said that the price of palm oil has not decreased since shipments were booked at higher prices, followed by a significant currency depreciation. Despite the fact that the price of Indonesian palm oil has dropped to USD 1,700 per tonne from USD 1,900-2,000 two months ago.
Meanwhile, the Pakistani rupee is anticipated to fall to its lowest level in almost two years. The currency fell by roughly 7% in May, the most since March 2020, when the outbreak began.
It should be remembered that Pakistan is negotiating a rescue package with the IMF and friendly nations in order to keep its economy afloat and avert a possible default.
Also Read: Who is Mahinda Rajapaksa, the man Sri Lanka blames for its economic crisis
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