Finance Minister Ishaq Dar on Friday announced that a cut in prices of oil and ghee by the Utility Stores Corporation (USC) has come into effect immediately.

According to a document shared on his Twitter account, 1st-tier branded oil is available at USC at Rs540-590 per kg against Rs618-630 in the market, a difference of Rs40-78.

Similarly, the rates of 1st-tier branded ghee in USC ranges from Rs545-577 per kg compared to Rs580-585 in market, a difference of Rs8-35.

Moreover, 2nd-tier ghee is priced at Rs490per kg in USC, which is Rs20 lower than Rs510-520 in market.

The current reduction in prices is a big relief for all USC customers and poor segment of society.

The sensitive price index (SPI) for the week ended May 25, 2023 fell 0.42% to 254.05.

Inflation is among the major challenges faced by Pakistan’s economy with the State Bank of Pakistan (SBP) adopting an aggressive approach to tame runaway prices through its monetary policy tool.

However, in April, Pakistan’s headline inflation clocked in at a record high of 36.4% on a year-on-year basis compared to an increase of 35.4% in the previous month and 13.4% in April 2022.

As per the data, the food group, which commands a significant weight i.e. 34.58% in the inflation reading, remained the major driver behind the increase. It increased from 176.38 in April 2022 to 261.17 in April 2023, a jump of over 48%.