October 13, 2007	Saturday	Ramazan 30, 1428

ISLAMABAD, Oct 12: The Pakistan Vanaspati Manufacturers Association (PVMA) on Friday urged the government to intervene to save consumers from record increase in prices of vegetable ghee and cooking oil.

In a statement, the PVMA stated that international price of imported edible oils, main ingredient for manufacture of vegetable ghee and cooking oil, had reached the highest price ever recorded in the past.

Presently, it stood at $900 per metric ton compared with $462 per ton C&F Karachi in July, 2006.

Since international prices are beyond PVMA’s control, the association urged the government to come forward to provide respite to the already crushed consumer.

PVMA had been proposing to the government that out of its collection of around Rs28 per kg as duties and taxes on vegetable ghee and cooking oil, it should forego part of its collection to pass the benefit to consumers. It also pointed out that increase in C&F price of imported edible oil, federal excise duty and sales tax had also substantially increased.

The PVMA had earlier proposed to the government to freeze federal excise duty and sales tax at the level of July 2006 prices to provide relief to consumers.

However, the government chose to provide subsidy on vegetable ghee and cooking oil through Utility Stores Corporation, an experiment that PVMA said failed to yield results.

The PVMA said it wanted to work out a formula with the government for a decrease in the sale price of vegetable ghee and cooking oil in the wake of any

future increase.