Bangladesh: Refiners raise soybean, palm oil prices amid confusion over approval

The country’s edible oil refiners on Monday increased the retail price of bottled soybean oil by Tk 6.0 per litre, setting the new rate at Tk 195.

Prices for loose soybean oil and palm oil have also risen by Tk 3.0 and Tk 13 per litre, respectively.

The Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association announced the new price hike in a press statement.

The announcement comes amid an ongoing dispute between refiners and the Ministry of Commerce over pricing decisions.

Between August and September, the refiners had sought a Tk 10 hike in soybean oil prices, but the commerce ministry approved only Tk 1.0, prompting them to threaten import halts and reduce supply, according to media reports.

On Monday, the refiners said the new price hike has been decided following fresh discussions with the commerce ministry.

But Commerce Secretary Mahbubur Rahman told the FE that a meeting was held recently but no such decision was made.

“I’ve heard they (refiners) issued a press release with new prices. But a meeting is scheduled for Tuesday noon, and the final decision will come from that,” he said.

According to the refiners’ press statement, the updated retail prices are as follows: Bottled soybean oil price has been raised to Tk 195 per litre from Tk 189, loose soybean oil to Tk 177 per litre from Tk 174, palm oil to Tk 163 per litre from Tk 150.

The price of a five-litre bottle of soybean oil has been fixed at Tk 945.

SM Nazer Hossain, Vice-President of the Consumers Association of Bangladesh (CAB), said the ministry should clarify whether it approved the increase.

He warned that the price rise would place an additional burden on consumers.

He also urged the government to take steps immediately to ensure smooth supply in the market.

Hossain alleged that refiners have long been resorting to blackmail tactics, revealing the existence of an oligopoly in the edible oil sector.

He called for rational price adjustments based on actual import and production costs, keeping consumer interests in mind.

He accused refiners of exploiting their market dominance, as only six or seven companies control the entire sector.

Bangladesh requires about 2.2 to 2.5 million tonnes of edible oil annually, more than 90 per cent of which is imported.

Tags: soybean oil, palm oil, imports, edible oil, Bangladesh, retail price, refiners