ISLAMABAD, June 23: The prices of vegetable ghee and edible oil have been increased by 20 per cent in the capital.
The reasons for the increase in prices are imposition of General Sales Tax and increase in the import duty on raw material that is used in manufacturing these commodities.
An increase of Rs75 has been made in the price of a 5kg tin of Dalda ghee and oil. This is now being retailed at Rs395 against its previous price of Rs320.
A tin of Dalda ghee weighing 2.5kg is available at Rs205 as against its previous price of Rs180. A 16kg tin of ghee is available at Rs850 in wholesale. Earlier, it was available at Rs675. At retail level, the cost of ghee (loose) has increased to Rs50 per kg from Rs43. The new rate of 5kg tin of Pakwan ghee is stated to be Rs250 which was being retailed at Rs216.
Similarly, a tin of Pakwan ghee weighing 2.5kgs is now available at Rs135 against its previous rate of Rs105. The price of edible oil has also increased and a 5kg tin of Dalda is now available at the rate of Rs395 to Rs400. About two days ago, it was available at Rs320. In the same way, the price of 2.5kg tin of Dalda cooking oil has risen to Rs210, which was earlier retailed at Rs185.
A 5kg tin of Pakwan cooking oil is now available at Rs235 against its previous price of Rs215. Similarly, 2.5kg tin of the same brand of edible oil is being sold at Rs140 at retail shops, as against its earlier price of Rs105.
The spokesman for the Pakistan Vegetable Manufacturers Association (PVMA) told Dawn that 15 to 20 per cent increase in sales tax on edible oil at import stage and imposition of GST at the rate of 15 per cent on the manufacturing stage had resulted in the increase of the price of vegetable ghee/cooking oil by Rs7 to Rs10 per kg.
He said the price of palm oil and soyabeans in the world market had increased to over $100 per ton in the last two months. He said the government, in a series of meetings with the office- bearers of the PVMA, had committed to increase the import duties by Rs2,000 per ton to neutralize the effect of the GST and the recent increase in international prices. But, the government failed to fulfil its commitments, he added.
Some consumers, while shopping at Sunday Bazaar in G-9/4, told Dawn that consumers would be burdened with the increase in prices as the ghee manufacturers would meet the increase in sales tax, GST and import duty on raw material by increasing manufacturing cost. Similarly, other stakeholders like distributors, wholesalers and retailers would increase their prices.