ISLAMABAD: While expressing concern over the rise in the prices of edible oil/ghee in domestic markets, Finance Minister Shaukat Tarin on Monday urged Pakistan Vanaspati Manufacturers Association (PVMA) to adopt market-based solutions and bring down prices in the domestic market in line with the international price trend.
The finance minister, during a meeting with a delegation of the PVMA, emphasised that if there is a slight dip in the international market, it must be reflected in the domestic prices, so that the consumers get relief amid highly fluctuating edible oil market.
An official said that the finance minister has conveyed message to the PVMA that the government would try to bring down the prices and would challenge effectively any kind of cartelisation.
Oil, ghee import on sugar-wheat pattern likely
He also directed the chairman Federal Board of Revenue (FBR) to assure expeditious disbursement of refunds to the importers of vegetable ghee/oil to ensure availability of funds.
Besides, he constituted a committee comprising representatives of the PVMA, secretary Ministry of Industries and Production, and chairman FBR to work out arrangement for streamlining collection of sales tax and a predictable pricing formula.
The finance minister stressed the need to evaluate the whole situation rationally and urged the PVMA to come up with sustainable pricing mechanism in collaboration with the Ministry of Industries and Production and the FBR.
The chairman PVMA briefed the finance minister about the international hike in prices of palm and soyabean oils particularly, during ongoing Covid-19 pandemic.
Ghee/edible oil market: Tarin asks CCP to act against cartelisation
The international prices kept fluctuating between the range of $1,100-$1,257 per ton and the domestic market drives rates from the prevailing international prices and the dollar value.
The exchange rate also has a significant impact on edible oil prices in the country, he added.
The chairman PVMA assured full cooperation in providing maximum relief to the domestic consumers by absorbing international pressure on prices in the edible oil sector.
Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, SAPM on Finance and Revenue Dr Waqar Masood, secretary Ministry of Industries and Production, chairman FBR, and other senior officers participated in the meeting.
Copyright Business Recorder, 2021