An acute shortage of edible oil is looming in the country as a strike by private transporters has disrupted oil supply from Karachi terminals for the last ten days. As the existing oil stocks of various edible oil producers have hit the bottom, the prices of vegetable oil, ghee and other edible oil products are likely to increase by Rs 15-20 per kilogramme. “If the supply remains suspended for another 24 hours, the production of edible oil is feared to be halted completely,” sources in the wholesale and retail markets told Pakistan Today.
The imported edible oil was being supplied in the country through private transporters, and the National Logistics Cell (NLC) has been recently hired to complement private transporters. The Edible Oil Tankers Owners’ Association (EOTOA) suspended operations on January 10 to protest against a decision by the Pakistan Vanaspati Manufacturers Association (PVMA), which signed an agreement with the NLC to distribute oil. As the commodity is now being supplied only through the NLC, the demand for oil is not being met and reduced production of vegetable oil and ghee has caused a shortage in the market. Despite the situation, the PVMA is adamant in its decision, and according to sources, the association was free to decide how to supply edible oil in the market. Sources said the agreement with the NLC was made after receiving repeated complaints of oil theft and contamination. On the other hand, EOTOA Chairman Bakhtawar Khan said the transporters would continue their protest against the PVMA decision, and oil supply would remain suspended until their demands were met. Almost 2,500 oil tankers are engaged in the transportation of edible oil.
