Retailers in Dhaka report a worsening scarcity of bottle-packaged soybean oil, with some unable to stock the product for more than a week now, as escalating prices and dwindling supply chains exacerbate the crisis.
Even when available, the prices exceed the official rate, forcing many traders to avoid stocking oil altogether.
This sentiment resonates across prominent markets, including Karwan Bazar, Hatirpool, and neighbourhood shops, where purchasing soybean oil without paying a premium has become increasingly difficult.
Many suspect that mill owners are orchestrating the crisis to justify a price hike, a claim echoed by wholesalers.
"TK Group's Pusti is supplying some oil, but they are mandating purchases of atta along with it," said one trader.
A distributor for City Group said, "Where we once received 500–700 cartons (each containing 20 litres), now we get only about 100 cartons sporadically. With groups like Bashundhara halting production, the burden has shifted to brands like Teer, Fresh, and Pusti."
Directorate of National Consumer Rights Protection (DNCRP) has been conducting regular market inspections to stabilise the situation.
Bikash Chandra Das, an assistant director at DNCRP, disclosed that inspections of City Group's edible oil mills revealed reduced production due to gas shortages and delays in opening Letters of Credit (LCs) with banks.
He said, "On 1 December, 10,904 cartons were supplied; on 2 December, it was 10,414 cartons. However, this dropped to 465 cartons on Saturday and 503 cartons yesterday."
Producers cite rising crude oil prices internationally and domestic supply chain issues for the downturn in production.
Taslim Shahriar, a senior official at Meghna Group, commented, "While we are supplying oil to distributors, demand far outstrips supply, leading to perceptions of scarcity."
However, no representatives from the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association were willing to comment.
Bangladesh Trade and Tariff Commission (BTTC) is deliberating on a potential price adjustment.
Deputy Chief Md. Mahmudul Hasan noted, "Global crude oil prices have increased by $50–$60 per barrel in recent weeks. Discussions with mill owners are ongoing, but no decision has been finalised. Ultimately, the government will decide on price adjustments."
According to FBCCI, Bangladesh requires 20 lakh tonnes of edible oil annually, with a monthly demand of 1.5 lakh tonnes, which doubles during Ramadan.
However, oil imports fell by 20% this year, with only 3.68 lakh tonnes of crude and palm oil imported in October–November, compared to 4.6 lakh tonnes in the same period last year.
Despite these challenges, the acute shortage of bottle-packaged oil continues, leaving consumers to navigate soaring prices and limited availability.
