Bangladesh: Soybean, palm oil prices rise despite government rejection of hike

The government has rejected a proposal by traders to raise the price of soybean oil by Tk 10 per litre, triggering fresh unrest in the market.

Wholesalers and retailers said the official price of oil remains unchanged. However, suppliers have reduced their commission, creating a supply shortage that is pushing prices up.

As a result, the prices of loose soybean oil and Super Palm Oil have increased in the market. Over the past three to four days, both items have gone up by around Tk 5 per litre.

The information came on Thursday (25 September) morning after visits to several shops and markets in Rampura and Malibagh areas of Dhaka and conversations with traders.

Recently, the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association, which represents edible oil refiners and marketers, sent a letter to the Ministry of Commerce requesting a Tk 10 per litre price hike.

Following this, the ministry held a meeting with edible oil traders on Monday (22 September) and decided to allow a Tk 1 per litre increase. However, refining and marketing companies have not yet made any formal announcement. Despite this, loose oil prices have already gone up in the market.

Currently, retail prices for loose soybean oil range from Tk 170 to Tk 172 per litre, while Super Palm Oil is selling for Tk 155 to Tk 160 per litre. Four days ago, loose soybean oil was Tk 169 per litre, and palm oil was Tk 150 per litre.

Retailers said that due to higher wholesale rates, retail prices have also risen. Several small traders reported that over the past three to four days, the price of a 204-litre drum of loose soybean oil rose from Tk 32,000 to Tk 34,400, while a drum of loose Super Palm Oil increased from Tk 29,000 to Tk 31,000.

Meanwhile, although the retail price of bottled oil has not changed, wholesale rates have increased. Jamal Hossain of Bhai Bhai Store in Rampura told Jago News, “The price of a carton (20 litres) of five-litre bottled soybean oil has gone up by about Tk 50 to Tk 60. But since the printed price on the bottle has not changed, we are being forced to sell at a loss.”

Since August 3, the government has fixed prices at Tk 189 per litre for bottled soybean oil, Tk 922 for a five-litre bottle, Tk 169 per litre for loose soybean oil, and Tk 150 per litre for palm oil.

Tags: soybean oil, price, Market, Bangladesh, Super Palm Oil