Pakistan is once again dealing with rising concerns about food inflation, and this time the spotlight has fallen on the cooking oil and vegetable ghee industry. The federal government has directed the Competition Commission of Pakistan (CCP) to speed up its investigation into suspected cartelization—an issue that directly impacts millions of households.

The matter was discussed during a recent meeting of the National Price Monitoring Committee (NPMC), where officials reviewed price trends, supply challenges, and inflation patterns. With Ramazan approaching in the next few months, the government wants to ensure that essential items remain available at stable and affordable prices.

This article provides a detailed breakdown of the government’s directive, CCP’s investigation, food inflation trends, price stability plans, and the broader implications for Pakistani consumers.

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Why the Government Is Concerned About Cooking Oil Prices

Cooking oil and vegetable ghee are among Pakistan’s most widely consumed household items. Any increase in their price leads to:

• Higher kitchen budgets
• Increased pressure on low-income families
• Higher food prices across restaurants and bakeries
• A rise in overall inflation

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In recent months, several consumers and wholesalers have reported sudden and unexplained price hikes, raising concerns about possible price-fixing or cartel behavior within the industry.

Cartelization means companies secretly coordinate to set higher prices, reduce supply, or control the market. This directly hurts consumers, especially as Pakistan relies heavily on imported edible oil.

Because of this, the government wants the CCP to expedite the investigation and bring clarity to the situation.

NPMC Wants Faster Probe and Immediate Action

During the NPMC meeting, the government directed:

1. Competition Commission to Fast-Track Its Inquiry

The CCP briefed the meeting that their investigation is ongoing and involves:

• Studying cooking oil production and supply chains
• Reviewing price patterns
• Examining communication between competitors
• Checking if companies are coordinating prices secretly

The Finance Division was asked to support the CCP to ensure the investigation is completed quickly.

2. Findings Must Be Submitted Urgently

The CCP was told to present its findings to the NPMC as soon as the probe is completed so immediate action can be taken if companies are found guilty.

The goal is to protect consumers, prevent unfair pricing, and ensure the market remains competitive.

Preparation for Ramazan: Government Wants Early Price Stability

Ramazan is typically a time of increased food inflation in Pakistan due to higher demand. To avoid price shocks, the NPMC has asked the following ministries to work together:

• Ministry of National Food Security
• Ministry of Industries
• Provincial governments

These departments are required to create a joint price stabilization plan well before Ramazan.

This plan will include:

• Monitoring supply chains
• Ensuring smooth distribution of essential food items
• Acting against hoarding
• Ensuring local markets have sufficient ghee, oil, sugar, wheat, rice, and pulses
• Controlling retail profiteering

SBP to Submit Report on Loans for Flood-Affected Farmers

Another major point discussed in the NPMC meeting was related to farmers who suffered crop losses during recent floods. Agriculture plays a major role in Pakistan’s food supply, especially for:

• Wheat
• Sugarcane
• Rice
• Pulses
• Oilseeds

To ensure these farmers can recover financially, the NPMC directed the State Bank of Pakistan (SBP) to provide a district-wise report on:

• Loan disbursements
• Farm credit
• Non-farm credit
• Support for flood-hit areas

This information will help the government evaluate how much financial assistance has reached farmers and where gaps still exist.

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Cold Storage Investment Encouraged to Prevent Spoilage

One of the biggest reasons behind food price volatility in Pakistan is poor storage. A large portion of vegetables, fruits, milk, and poultry products spoil before reaching markets.

To fix this, the NPMC has directed the Ministry of Industries & Production to:

• Develop a national cold-storage investment plan
• Consult private-sector stakeholders
• Encourage companies to build storage warehouses

Proper storage can help reduce:

• Wastage of essential items
• Seasonal price fluctuations
• Supply shortages
• Excessive dependence on imports

ICT Administration to Explain Big Gap Between Wholesale and Retail Prices

Many consumers have noticed that the price difference between wholesale markets and retail shops has grown significantly. For example, an item selling for Rs. 150/kg in wholesale is sometimes sold for Rs. 240–260/kg at retail shops.

The NPMC has asked the Islamabad Capital Territory (ICT) administration to:

• Explain the increasing wholesale-retail gap
• Identify whether the issue is due to profiteering
• Propose actionable solutions

Possible causes include:

• Middlemen charging high margins
• Retailers setting unfair markups
• Lack of government price monitoring
• Supply chain weaknesses

This inquiry will help the government take targeted action.

Inflation Trends Presented During the Meeting

The chief statistician briefed the NPMC about inflation, price behavior, and supply issues. Key findings included:

Stable Prices:

• Wheat flour
• Rice
• Pulses (some categories)
• Beef

Volatile / Rising Prices:

• Lentils
• Soybean oil
• Wheat (due to supply concerns)
• Sugar
• DAP fertilizer
• Urea

These items require urgent monitoring, especially as Pakistan approaches the year-end and Ramazan price rise cycle.

Why Cooking Oil Prices Are So Sensitive in Pakistan

Cooking oil is one of the most imported food items in Pakistan. Almost 90% of edible oil is imported, especially:

• Palm oil from Malaysia and Indonesia
• Soybean oil from the United States

Because of this, prices depend heavily on:

• Global commodity markets
• International shipping rates
• Dollar exchange rate
• Local demand and supply patterns

If companies are accused of cartel behavior on top of these factors, it can make the issue worse for consumers.

What a Fast Investigation Could Mean for Consumers

If the CCP confirms cartel activity, the government can impose:

• Heavy fines
• Orders to reduce prices
• Market corrections
• Policy changes to stop collusion

This could help bring cooking oil and ghee prices down, especially important for:

• Middle-income households
• Daily-wage earners
• Restaurant and bakery owners
• Food vendors

A fair and competitive market benefits everyone.

Expected Government Actions in Coming Weeks

Based on the NPMC discussion, consumers can expect:

• A detailed CCP investigation report
• Stricter price monitoring
• Crackdown on profiteering and hoarding
• Greater transparency in essential item pricing
• Stronger government presence in wholesale markets
• More administrative checks before Ramazan

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Conclusion About Govt Cooking Oil Cartel Probe:

The government’s directive to fast-track the cooking oil cartel investigation reflects growing concern over rising food prices and possible anti-competitive behavior within the ghee and oil industry. With Ramazan approaching and inflation already affecting households, the state wants timely interventions to provide relief to the public.

By coordinating with the CCP, SBP, food security departments, and provincial authorities, the government aims to stabilize essential food prices and protect consumer interests. Whether these measures succeed will depend on swift action, transparency, and strict enforcement—but the direction has now been set.

Govt Cooking Oil FAQs