Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association have proposed raising the price of soybean oil to Tk190 per litre, following an earlier increment of Tk8 per litre last month.
In a letter to the Ministry of Commerce dated 6 January, the association requested an urgent price adjustment to stabilise the market ahead of Ramadan.
Despite the proposal, government officials have yet to reach a decision on the matter.
The last adjustment occurred on 9 December, raising the price from Tk167 to Tk175 per litre.
According to sources, the refiners have urged the ministry to act promptly, following their reminder on 15 January, to avoid disruptions during the holy month.
Md Nurul Islam Molla, an executive officer of the association, highlighted in the letter that no progress had been made on their initial request despite the analysis of current stock and import costs.
Bangladesh Trade and Tariff Commission’s Chairman Dr Moinul Khan confirmed receipt of the letter and stated that the ministry had been advised accordingly.
Historically, the government had increased the price by Tk4 to Tk167 per litre on 18 April 2024, following a proposal for a Tk10 increment.
Prior adjustments had been delayed due to political instability, despite global market fluctuations and rising import costs influenced by the devaluation of the Taka against the dollar.
City Group Corporate and Regulatory Affairs Director Bishwajit Saha indicated that despite a slight price rise in December, it was insufficient to cover the refiners' demands.
He expressed concerns over meeting increased Ramadan demand without a timely adjustment.
While the global edible oil market trends downwards, with prices decreasing in recent weeks, local refiners argue that elevated import costs necessitate a price hike to mitigate losses.
The government, striving to control inflation and maintain market stability, had previously reduced import duties and VAT instead of allowing price increases.
Ministry of Commerce Joint Secretary Mohammad Daudul Islam stated that no final decision had been made regarding the price adjustment and assured that any decision would be communicated publicly.
This situation continues to place the government in a challenging position, balancing consumer interests and stabilising the edible oil market in Bangladesh amidst fluctuating global prices and local economic pressures.
