Soybean oil price up by Tk6 a litre, palm oil soars Tk16

The Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association has announced an increase in the retail prices of edible oil, raising the rates of bottled soybean and palm oil with effect from tomorrow morning.

In a media release issued this evening (7 December), the association said a litre of bottled soybean oil will now be sold at Tk195, up from Tk189.

The price of loose soybean oil has also been increased by Tk7 per litre, setting the new rate at Tk176, compared to the previous Tk169.

The price of a five-litre bottle of soybean oil has been fixed at Tk955, rising by Tk33 from Tk922.

Govt, traders at odds over edible oil price hike

Palm oil prices have seen a sharper rise, with the rate increasing by Tk16 per litre to Tk166, from the earlier price of Tk150.

According to the association, the revised rates have been set in consultation with the commerce ministry, aligning local prices with the international market.

On 10 November, refiners wrote to the Bangladesh Trade and Tariff Commission seeking approval for a price hike amid rising global market rates and moved ahead with the increase from 24 November without the commerce ministry's consent. 

The move triggered warnings from Commerce Adviser Sheikh Bashir Uddin, prompting a meeting between officials and traders on 4 December. 

Following the discussions, companies rolled back part of the increase.

Traders who hiked edible oil price by Tk9 without govt approval will face action: Commerce adviser

Under the Control of Essential Commodities Act 1956, the commerce ministry issued the Essential Goods Marketing and Distributor Appointment Order-2011.

It states that producers, refiners and importers of essential commodities may adjust prices through their trade associations – but must notify the ministry's monitoring cell, district administrators and upazila executive officers at least 15 days beforehand.

Govt did not raise edible oil prices: Commerce adviser

Traders claim they followed these procedures for the current increase.

In June 2021, the ministry also formed a high-level committee, including business representatives, to align edible oil prices with international market trends.

In August, the committee approved a slight price reduction following a global fall in prices. But in October, companies again tried to increase prices without approval, citing rising international rates. 

The commerce adviser then warned that such action was unacceptable, and refiners backed down.