ISLAMABAD (HRNW): Inflation-hit citizens in Pakistan may face another significant financial burden as prices for ghee and edible oil are projected to increase by Rs. 100 to Rs. 150 per kilogram. The Pakistan Vanaspati Manufacturers Association (PVMA) has indicated that this potential hike is driven by a sharp rise in production and operational costs.
Factors Behind the Projected Price Hike
According to the Advisor to the PVMA, the recent surge in petroleum product prices has had a cascading effect on the manufacturing sector. Key factors contributing to the price pressure include:
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Transportation Costs: Increased fuel prices have led to an “unbearable” rise in the cost of transporting raw materials to mills and distributing finished products to markets.
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Production Expenses: Higher costs for electricity, gas, and other industrial inputs have significantly pushed up the per-kilogram production cost for ghee and oil mills.
Call for Government Intervention
The PVMA has expressed deep concern over the current economic strain on the industry and has urged the government to take immediate action. The association’s recommendations include:
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Formation of a Technical Panel: The government should immediately establish a high-level panel to review the challenges facing the vanaspati industry.
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Cost-Reduction Strategies: The PVMA believes that through collaborative efforts with a government panel, a viable way forward can be found to reduce costs and prevent the full burden from falling on the end-consumers.
Economic analysts warn that a hike of this magnitude in essential cooking commodities will not only impact household budgets but will also lead to a secondary price increase in bakery items and the processed food industry.
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