Soybean oil price up Tk14 amid traders’ push for hike after tax waiver expiry

The price of bottled soybean oil has been raised by Tk14 per litre, with the retail rate climbing from Tk175 to Tk189, effective immediately.

The announcement was made last night in a press release from the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association, representing edible oil mill owners.

As per the revised pricing, a five-litre bottle of soybean oil will now cost Tk922, up from Tk852. Prices of loose soybean oil and palm oil have also been adjusted, each increasing to Tk169 per litre from the previous Tk157.

Importers and mill owners have been pushing for a price hike, citing higher costs following the expiration of the government's duty and tax exemptions at the end of March.

Since Eid, multiple rounds of talks between the Ministry of Commerce and the Bangladesh Trade and Tariff Commission (BTTC) had ended without resolution over price.

On 27 March, the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association formally proposed to BTTC a price increase of Tk18 per litre for bottled soybean oil and Tk13 per litre for loose soybean and palm oils. 

To ensure stable supply during Ramadan, the government had lifted all import duties, taxes, and VAT on edible oil from December last year, also reducing VAT at the retail level to 5%. 

This brought down the per kilogram duty on crude soybean oil from Tk17–Tk18 to just Tk7. Soybean oil cleared through customs in March carried duties of Tk6–Tk7 per kg. These concessions expired on 31 March.

In mid-Ramadan, the Tariff Commission recommended that the National Board of Revenue (NBR) extend the duty and tax exemptions until 30 June, but the NBR had not responded.

Meanwhile, global edible oil prices have remained stable in recent months, with some instances of decline, according to World Bank Commodities Price data. 

In January 2025, crude soybean oil was priced at $1,048 per tonne, increasing to $1,069 in February before dropping to $1,005 in March. Crude palm oil prices held steady at $1,070 per tonne in January, $1,067 in February, and $1,069 in March.

Domestically, the government-fixed price for bottled soybean oil stands at Tk175 per litre, and loose soybean and palm oils are set at Tk157 per litre. 

In Chattogram, however, loose soybean oil was selling at Tk173 wholesale and Tk180 retail, while palm oil for Tk158 wholesale and Tk168 retail. 

After Eid, bottled oil had remained scarce in the market, although overall stocks were sufficient.

According to Chattogram Custom House, Bangladesh imported 5,60,176 tonnes of crude palm and soybean oil via the Chattogram port in 2024, compared to 4,78,673 tonnes in 2023. Over 3,50,000 tonnes of soybean oil were imported in the first three months of this year, against a monthly demand of 87,000 tonnes.

Faruk & Sons proprietor Syed Haque from Chattogram's Reazuddin Bazar told TBS that the market had not picked up after Eid, so supply was down. 

"We've heard prices may rise. That's likely why distribution is being held back," Haque said before the new price was set last night.

A wholesale trader from Chattogram's Khatunganj added supply was being reduced to justify a price hike. Wholesalers stockpiled in anticipation of higher profits. 

Biswajit Saha, marketing director at leading importer City Group, said, "On 1 April, the Tariff Commission collected our stock data. Currently, a 15% VAT is applicable. Since the duty exemptions have been withdrawn, we proposed a price hike."

Shafiul Atahar, director at another major importer, TK Group, noted, "Since early April, we've been paying Tk20–Tk21 in VAT per litre. Post-Eid demand hasn't picked up yet. Supply is stable."