The Federal Board of Revenue (FBR) has set minimum retail prices for locally manufactured ghee and cooking oil to curb alleged tax evasion and ensure tax collection based on declared market values.
Under a notification issued pursuant to the Sales Tax Act, 1990, minimum prices will be determined using the average national retail prices published in the Pakistan Bureau of Statistics’ (PBS) weekly Sensitive Price Indicator (SPI).
Three Price Categories Introduced
The FBR has divided ghee and cooking oil brands into three categories.
Category A includes Dalda, Habib, Sufi, Mezan, Soya Supreme and Eva. Their minimum retail price will be set at 100% of the average national retail price.
Category B includes Manpasand, Habib Handi, Seasons, Kashmir, Kausar, Shah Taj, Kisan, Shafaq and Sultan. Their minimum price will be 93% of the average national retail price.
Category C covers all other brands, with a minimum price set at 85% of the average national retail price.
September Minimum Prices
According to the notification, the average national retail price used for August 2026 was Rs613 per litre/kilogram. After a Rs25 per kg deduction available to eligible registered manufacturers complying with the FBR’s digital invoicing and production monitoring systems, the benchmark minimum price was set at Rs588.
For September 2026, the minimum prices have been fixed at:
- Category A: Rs588 per litre/kg
- Category B: Rs547 per litre/kg
- Category C: Rs500 per litre/kg
The same methodology will be used to determine minimum retail prices in subsequent months.
If ghee or cooking oil is supplied at a price higher than the prescribed minimum, sales tax will be charged on the higher actual price.
The notification will remain applicable through the November 2026 tax period.