The Economic Coordination Committee (ECC) of the Cabinet raised concern on Friday over the failure of falling international vegetable ghee and cooking oil prices to benefit local consumers. The committee directed key ministries and watchdogs to improve monitoring, ensure price transparency, and investigate possible anti-competitive practices in the edible oil sector.
Federal Finance Minister Muhammad Aurangzeb chaired the ECC meeting. The Ministry of Industries and Production briefed the committee on pricing trends, supply levels, and import costs in the vegetable ghee and oil markets.
Cooking Oil Prices Stay High Despite Global Decline
The ECC noted that while international prices for palm oil have declined over the past three months, this relief has not reached the domestic market. Retail prices in Pakistan remain between Rs. 580 and Rs. 700 per liter or kilogram, depending on brand and region.
Despite adequate national stocks, the committee found the limited reduction in retail prices alarming. They stressed that this disconnect was unfair to consumers already struggling with inflation.
ECC Wants Stronger Oversight and Accountability
The committee urged the Ministry of Industries and Production to take immediate action. It directed officials to coordinate with the Competition Commission of Pakistan (CCP), the National Price Monitoring Committee (NPMC), and provincial governments. The goal is to identify any market distortions or unfair practices.
Finance Minister Aurangzeb said, “It is unacceptable that global relief in oil prices doesn’t reflect in our domestic markets. There must be transparency and accountability.”
The ECC also asked these institutions to watch for signs of cartelization and ensure fair competition in the edible oil sector.
Imports Drive Local Price Instability
Pakistan relies heavily on imported palm oil, mostly from Malaysia and Indonesia. Over 90% of its edible oil needs are met through imports. While this makes the country vulnerable to international price shocks, it also means global price drops should provide quick relief.
However, the ECC believes that some suppliers and manufacturers are not passing on these savings. This practice leads to artificial price inflation and unjust profit margins.
Immediate Relief Measures on the Table
The ECC considered short-term solutions to offer relief to the public. These include:
- Lowering import duties on edible oils
- Expanding subsidies through the Utility Stores Corporation (USC)
- Including cooking oil and ghee in the Benazir Income Support Programme (BISP) for vulnerable families
The Ministry of Industries was asked to present a detailed plan outlining these measures in the next ECC session.
Utility Stores May See Reforms
The committee directed the Utility Stores Corporation to review its pricing strategy. It must find ways to supply ghee and cooking oil at reduced prices. These steps could help bridge the gap until broader reforms are implemented.
Officials must also ensure clear communication with the public on future price trends, stock levels, and any relief measures.
Consumers Demand Action, Not Promises
Consumer groups have welcomed the ECC’s attention to the issue but remain skeptical. “We appreciate the concern, but what we need is action, not just meetings and reports,” said Sara Naveed from the Pakistan Consumers’ Forum.
She said that many families now avoid buying branded oil because of its price. They turn to lower-quality substitutes or reduce consumption altogether.
Consumer advocates are urging the government to enforce pricing laws strictly and publish real-time data on profit margins across the supply chain.
ECC Plans Relief Measures to Tackle High Cooking Oil Prices
The ECC proposed forming a new task force. It will include the Ministry of Commerce, the Federal Board of Revenue (FBR), CCP, and economists. This team will review manufacturer costs, profit margins, and distribution chains to check for unethical price practices.
The CCP will lead the investigation into potential collusion among leading edible oil producers. Any company found guilty of price-fixing could face heavy penalties.
Weekly Price Reports to Increase Transparency
The Finance Ministry announced that it will publish weekly price trend reports for essential items. These will include vegetable ghee and cooking oil. The aim is to help consumers and watchdogs track prices and pressure companies to remain fair.
The government believes transparency is the first step toward real reform.
Focus on Long-Term Food Security
In the long run, the ECC wants Pakistan to reduce its dependency on imported oils. It asked the Ministry of National Food Security to fast-track local oilseed cultivation projects. These include sunflower, canola, and soybean initiatives.
Boosting domestic production could make Pakistan more self-reliant and help stabilize prices for the future. Stay informed with authentic news on economic policy, food inflation, and national price movements. Follow FactFile for real-time updates.
