Prices for cooking oils and ghee are expected to rise in the coming weeks, following recent increases in petrol prices, according to market analysts and industry sources. The trend reflects broader inflationary pressures linked to energy costs and supply chain disruptions.
Global crude oil prices have climbed nearly 15% year-to-date due to geopolitical tensions and OPEC+ production cuts. This has translated to higher transportation and production costs for edible oils, which are often transported long distances from major producers like Indonesia and Malaysia.
“When fuel prices rise, it creates a domino effect across all commodity categories,” said a commodities analyst at a Karachi-based brokerage firm who asked not to be named. “Edible oils are particularly vulnerable because they’re both energy-intensive to produce and expensive to transport.”
Government data shows Pakistan imports over 80% of its edible oil needs. The Food Ministry last month warned about potential price volatility due to currency fluctuations and rising international palm oil prices.
Market watchers suggest the price adjustments may accelerate ahead of Ramadan, when demand for cooking oils traditionally peaks. Some retailers have already begun stockpiling inventories, according to wholesale market sources in Lahore.