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Vegetable oil refiners cut prices by Tk 3 per litre on govt request

Published : Tuesday, 4 May, 2021 at 12:00 AM  Count : 333

Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association (BVOVMA) has reduced per litre edible oil prices by Tk 3 on Monday after it unilaterally raised prices by Tk 4-5 per liter last week.
BVOVMA said the reduced the price following a request from the Commerce Ministry.
The edible oil market has been volatile with the beginning of Ramadan and it became reckless ahead of Eid-ul-Fitr as importers and refiners raised prices without government permission last week. But when the criticism grew and the consumer started protests, the BVOVMA has decided to reduce it slightly on Monday citing a Commerce Ministry request.
But in Bangladesh once the price goes up it seldom comes down. To most of the people BVOVMA's announcement for reducing edible oil prices is just an eye-wash.
The sudden price hike last week caused outcry bringing pressure on the government to take disciplinary action. This is because the commerce ministry had earlier rejected a proposal of Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association (BVOVMA) to allow fresh price hike.
The government earlier allowed significant rise in edible oil prices just before Ramadan on request of    the market players. But they immediately came up with fresh request for price hike again within just three days. The government didn't agree. They made a fresh bid two weeks ago and without waiting a commerce ministry decision raised the prices unilaterally.
They outmaneuvered the government using supply monopoly in the market while taking consumers     and the government hostage knowing well that the government would have hardly any power to challenge their monopoly. In fact big importers and refiners are dictating the government because they now control the commodity market.     
It appears BVOVMA has saved the face of the government by granting a unilateral price concession agreeing to reduce edible oil prices by Tk 3 per liter up from Tk 5 they had fixed earlier. Consumers will now have to pay Tk 141 for one liter of packed edible oil instead of Tk 144 that merchants had fixed last week.
However, prices of edible oil increased further in the city's kitchen market over the week-end Friday, no matter refiners and distributers made announcement for reducing prices. This is how market operates.  
The prices of soya bean oil and palm oil increased by Tk 4-5 a litre over the week. A one-litre bottle of soya bean oil sold for Tk 139-144 while five litres container sold for Tk 650-660 on Friday.
Unpackaged soya bean oil sold for Tk 125-128 a litre and palm oil sold for Tk 115-120 a litre on the day.








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