Despite two rounds of talks, the Ministry of Commerce has yet to reach a decision on edible oil pricing, even as wholesale traders have already increased prices without any formal announcement or visible justification.
In the past fortnight, the price of loose soybean oil has jumped by Tk7.23 per litre, while palm oil has risen by Tk4.58 per litre.
Traders confirm that edible oil companies are lobbying to raise prices, and meetings have been held at the ministry accordingly.
However, the absence of a final decision has not deterred traders, who have raised prices by Tk4-7 per litre across the board—despite no shortage in supply.
Two weeks ago, loose soybean oil was selling at Tk145.90 per litre and palm oil at Tk135.53.
Currently, the prices have escalated to Tk153.13 and Tk140.11 respectively.
By weight, the price of a maund (37.32 kg) of soybean oil has surged by Tk300 and palm oil by Tk190.
Anwar Hossain, an edible oil trader in Khatunganj, stated that refiners have proposed a price hike, though no government decision has been made yet. He expressed hope that once the authorities reach a resolution, the market would stabilise.
To curb inflation ahead of Ramadan, the National Board of Revenue (NBR) had waived duties, taxes, and VAT on edible oil imports from 16 December last year.
That relief expired on 31 March. Following this, the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association proposed increasing the price of bottled soybean oil by Tk18 to Tk193 per litre, and loose soybean and palm oil by Tk13 to Tk170 per litre, effective 1 April.
The proposal was submitted to the Bangladesh Trade and Tariff Commission on 27 March.
Commerce Advisor Sheikh Bashiruddin chaired meetings on 6-8 April with stakeholders, yet no decision was reached.
Another meeting was scheduled at the Secretariat yesterday, but by late afternoon, the ministry had still not issued any announcement.
Previously, in December 2023, the ministry approved a Tk8 per litre hike on both bottled and loose edible oils.
Refiners were accused of creating artificial shortages thereafter in a further attempt to push prices higher.
Disruptions in open market supply led to frequent shortages of bottled soybean oil in Chattogram throughout December and January.
Efforts to raise prices persisted.
The association sent letters to the Commerce Ministry on 6 and 21 January, but with no response, the refiners eventually backed off on 25 January.
Despite their lobbying, data shows a strong inflow of crude edible oil through Chattogram Port, thanks to the waived import duties.
According to traders, 222,853 tonnes of crude edible oil were imported in December. This was followed by 342,527 tonnes in January and February combined, and another 136,000 tonnes in March.
Foyez Ullah, deputy director of the Directorate of National Consumer Rights Protection in Chattogram, said regular and complaint-based inspections are ongoing. "Anyone found manipulating prices will face legal action," he warned.
S M Nazer Hossain, vice president of the Consumer Association of Bangladesh (CAB), voiced concern that with Eid-ul-Azha only two months away, unscrupulous traders will likely attempt to drive up prices of essential goods—including edible oils and spices. “Businessmen are always on the lookout for excuses to raise prices,” he remarked.
