War in Iran pressures vegetable oil market in Bangladesh

The war in Iran and escalating tensions in the Middle East are starting to impact the vegetable oil market in Bangladesh. The sector is facing supply disruptions and price volatility, leading to a 15–20% decline in sales.

A key factor is disrupted shipments from Russia, a major supplier of sunflower oil. Rising export duties and logistical challenges have pushed prices higher, with cooking oil prices increasing by 1–2 rupees per litre in recent days.

Additional pressure comes from weaker demand in the food service sector. Gas shortages and rising energy costs have forced some restaurants to close or cut menus, reducing purchases of cooking oil and leaving wholesalers with unsold stock.

Despite the recent modest price decline, market participants note a high level of uncertainty. Ongoing price fluctuations, supply delays, and limited availability are increasing the risk of further price hikes and complicating planning for both businesses and consumers.