Government Turns a Blind Eye as Ghee and Cooking Oil Mafia Siphon Billions from Public

Pakistan has witnessed an alarming surge in the prices of essential commodities, particularly ghee and cooking oil — staples in nearly every household. What has left the public enraged is not just the price hike itself, but the perception that the government stood by idly, allowing a powerful cartel of manufacturers, importers, and hoarders — often referred to as the “Oil Mafia” — to exploit the situation and extract billions of rupees from already struggling consumers.

While global inflation and rising international commodity prices have played a role, the unprecedented increase in the domestic prices of ghee and edible oil raises serious questions. How did prices in Pakistan skyrocket by over 30–40% in a matter of months when international prices rose by a much smaller margin? Who benefited from the widening gap between global import rates and local retail prices? And more critically, why did the government fail to act swiftly or decisively?

The Surge in Prices: More Than Just Global Inflation

According to market reports, the price of imported palm oil — a key raw material for producing ghee and cooking oil — did rise globally due to supply chain constraints and increased demand. However, this doesn’t fully explain the dramatic surge seen in Pakistan. While global prices rose by roughly 10–15% during late 2024 and early 2025, domestic retail prices of ghee and cooking oil in Pakistan jumped by as much as 30–50%, with some premium products crossing Rs. 570 per litre.

This discrepancy has led analysts and consumer rights groups to point fingers at the domestic supply chain. Many believe a deliberate and well-coordinated campaign of hoarding, speculative pricing, and artificial shortages was carried out by industry players to engineer price hikes. This allowed select businesses to rake in huge profits — all while the average consumer suffered.

An Inactive Government and a Silent Regulator

The Competition Commission of Pakistan (CCP) — the body responsible for ensuring fair pricing and preventing monopolies or collusion — has previously investigated similar cartel-like behavior in other sectors such as sugar and cement. Yet, in the case of ghee and cooking oil, the response was sluggish and seemingly toothless.

Despite widespread public outcry and media coverage, no major crackdown on hoarders or cartel members was conducted. There were no significant fines, regulatory actions, or even a public naming of suspected companies. It appeared that the government was either unable or unwilling to challenge the influence of the edible oil industry, raising concerns about its commitment to protecting consumers from profiteering.

Political analysts argue that a lack of institutional capacity, coupled with political interests and lobbying by influential industrial groups, may have played a role in the state’s inaction. Others point out that weak coordination between the federal and provincial governments also hampers any effective market regulation.

Who Paid the Price? The Pakistani People

The fallout from this crisis has landed squarely on the shoulders of ordinary Pakistanis. With inflation already crippling middle and lower-income families, the price hike in essential food items like ghee and cooking oil has pushed many households to the brink. In poorer communities, families have had to reduce consumption, compromise on nutrition, or shift to lower-quality, potentially unsafe alternatives sold in bulk or loose packaging.

This inflationary pressure also has a knock-on effect across the food supply chain. Since cooking oil is essential for the preparation of virtually all Pakistani dishes, food vendors, small restaurants, and even school canteens are forced to raise prices, further deepening the economic strain on consumers.

Experts Demand Accountability

Economists, civil society groups, and political commentators are demanding accountability. Dr. Shahid Rashid Butt, former president of the Islamabad Chamber of Commerce, has gone on record calling for immediate government intervention, accusing the edible oil mafia of exploiting consumers with impunity. He warned that if left unchecked, such practices could not only erode public trust but also destabilize the entire food economy.

Others have called for greater transparency in import data, regular price monitoring at the retail level, and the establishment of price caps during periods of emergency or crisis. Some have even advocated for importing ghee and cooking oil through state-owned enterprises to break private sector monopolies and ensure basic affordability.

Conclusion: Time to Act Before It’s Too Late

The recent ghee and cooking oil crisis in Pakistan is not just a story of rising prices — it’s a case study in governance failure. It exposes the deep-rooted nexus between powerful market players and weak regulatory frameworks. It reflects the urgency with which Pakistan needs to reform its consumer protection mechanisms and reinforce independent regulatory oversight.

As citizens continue to bear the brunt of this unchecked profiteering, the call for action grows louder. Whether the government continues to be a mere spectator or decides to stand up for its people will ultimately define not just this crisis, but the broader trajectory of economic justice and accountability in the country.

Reference:   حکومت تماشائی بنی رہی ، گھی اور کوکنگ آئل مافیا نے عوام کو اربوں روپے کا چونا لگا دیا