Cooking Oil Price in Pakistan – May 2025
As of 2025, the cooking oil price in Pakistan has witnessed a noticeable surge, with significant variations based on the brand, type, and quality of oil. The retail price for a 5-liter bottle of vegetable oil in Pakistan ranges from PKR 2500 to PKR 3000, while palm oil and other varieties like sunflower or canola oil are similarly affected by global and domestic market dynamics.
Here is a detailed overview of Pakistan’s 1-liter cooking oil prices based on different companies.
The price of cooking oil in Pakistan has experienced a steady upward trajectory in recent years due to the country’s uncertain political and economic conditions. Rising demand has also influenced the increase in cooking oil prices. As the country’s population grows, greater consumption of edible oils for domestic cooking and the food service industry has resulted. This heightened demand, coupled with supply chain disruptions, has led to shortages, which in turn have driven up prices further.
Several factors contribute to the volatility of cooking oil price in Pakistan, impacting both the availability and affordability of this essential household item. These factors include global commodity prices, exchange rates, government policies, and domestic production challenges.
Global Commodity Prices
Pakistan imports a significant portion of its cooking oil from countries like Indonesia, Malaysia, and Argentina. The global prices of raw materials like soybean, sunflower, and palm oil play a crucial role in determining the cost of imported cooking oils. Any fluctuations in the global commodity markets, driven by crop failures, geopolitical issues, or increased demand, can lead to significant price hikes in Pakistan. For instance, global supply shortages of palm oil or sunflower seeds often lead to a surge in the prices of cooking oil across the world, including in Pakistan.
Exchange Rate Volatility
A significant portion of Pakistan’s cooking oil supply is imported, and therefore, the exchange rate of the Pakistani Rupee (PKR) against foreign currencies—especially the US dollar—greatly impacts the price of cooking oil. When the Pakistani Rupee depreciates, the cost of importing cooking oil rises, which results in higher prices for consumers. The depreciation of the rupee over the past few years has contributed to a continuous increase in the price of cooking oil, putting additional strain on consumers, especially those in lower-income households.
Inflation
Pakistan has been grappling with high inflation rates in recent years. Inflation drives up the costs of raw materials, transportation, and labor, all of which contribute to the overall cost of cooking oil. As the price of fuel rises, for example, it increases the cost of transporting oil from ports to local markets, adding to the retail price. This inflationary pressure has caused the prices of everyday items, including cooking oil, to rise steadily, further burdening consumers who are already struggling with increasing living costs.
Supply Chain
Pakistan has a domestic edible oil production sector, but it is unable to meet the country’s full demand. As a result, Pakistan depends heavily on imports of raw materials for oil extraction. Any disruptions in the supply chain, such as shipping delays, logistical issues, or production halts in key producing countries, can lead to scarcity and price hikes. Moreover, challenges within the local oilseed production sector, such as low yields or lack of modern farming techniques, exacerbate the reliance on imports and contribute to price increases.
The surge in cooking oil prices in Pakistan is a complex issue, driven by both global and local factors, including commodity price fluctuations, exchange rate volatility, and domestic production challenges. Government intervention, increased local production, and consumer adaptation will be key to addressing this issue in the long term. Until then, the cooking oil market in Pakistan will remain a critical concern for both consumers and policymakers
