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Gather all ingredients.
Heat oil in a large skillet over medium heat. Add onion and ¼ teaspoon of kosher salt; cook and stir until onion is caramelized and golden brown in color, about 20 minutes. Remove from the heat and let cool, 5 to 10 minutes.
Mix sour cream, mayonnaise, garlic powder, white pepper, and remaining ½ teaspoon kosher salt together in a bowl.
Stir in cooled onions. Cover and refrigerate for at least 2 hours before serving.