Even though prices have fallen in the international market, the price of edible oil in Bangladesh is increasing. After increasing the price by Tk 14 per litre, traders are demanding another Tk 7 increase in one month. Meanwhile, as a manipulative step to increase the price, 1 litre and 2 litre edible oil bottles have vanished from the retail market.
According to sources, a review of the World Bank's monthly report showed that in 2022, edible oil was sold at US$1,667 per tonne in the international market. In 2023, the price decreased to $1,119 per tonne.
In 2024, the price decreased further to $ 1,022 per tonne. And from January to March 2025, edible oil was sold at $1,040 per tonne in the international market. In that case, it was seen that the price in the world market has been decreasing step by step every year. But this has not had any impact on the domestic market as the price increased over the time.
The Consumers Association of Bangladesh (CAB) has reviewed all the costs including import costs and said that this is just an excuse for the traders. According to them, after the latest increase in the price of bottled edible oil by Tk 14, the traders are making a profit of at least Tk 12 per litre.
SM Nazer Hossain, Vice President of the CAB, said that the price of edible oil is continuously decreasing in the world market. But the price is continuously increasing in the domestic market. Increasing the price at this time is unreasonable.
While visiting different areas in the capital this correspondent found that most shops do not have bottles of 1 litre to 2 litre edible oil. They are refusing customers who want bottled oil. However, adequate stocks of palm oil have been seen in shops. Again, in the absence of conventional edible oil companies, locally bottled edible oil under various names has been seen in many shops. However, most shopkeepers have expressed reluctance to talk about the shortage of bottled edible oil.
Aslam Ali, a retails shopper at the Segun Bagicha kitchen market in the capital told the Daily Observer, "Since before Ramadan, companies have wanted to increase the price above Tk 20 per litre. But the government did not increase it. That is why the companies reduced the supply of oil in the market and it almost disappeared. Due to the duty exemption on imports, the supply increased in the middle of Ramadan and during Eid.
However, since the duty exemption period ended, the price has been increased again by Tk 14 per litre. However, the dealers of the companies are saying that the supply of oil in the market may decrease again. Because the companies want to increase it by Tk 20 to Tk 21 per litre. But the government increased it by Tk 14 per litre. As a result, they are planning to increase it by Tk 7 more.
Bangladesh Vegetable Oil Refiners and Bonaspati Manufacturers Association Secretary Md. Nurul Islam Mollah told the Daily Observer, "Dealers are spreading confusion. There is plenty of oil in the market. We have not told the Commerce Ministry anything about the price hike."
To keep the prices affordable before holy Ramadan, the government exempted the import, production and business level of edible oil in several phases in November-December last year. The period of these benefits was extended till March 31. However, the Bangladesh Trade and Tariff Commission had recommended extending the import-level duty and tax concessions till June 30 to keep the prices of edible oil affordable.
The organization has sent a letter to the chairman of the National Board of Revenue (NBR) in this regard.
However, the NBR has not yet taken any decision on continuing the duty and tax concessions. In this situation, the Edible Oil Traders' has informed the government about the decision to increase the prices before the Eid holidays.
Sources said that an order signed by NBR First Secretary (VAT Policy) Mashiur Rahman said that this will be applicable to the import of crude edible oil and crude palm oil advance tax. There was an advance tax of 5 per cent.
