Despite government interventions, soyabean oil prices in Bangladesh may rise again as traders push for a Tk 15 per liter increase ahead of Ramadan.
Following the change in government, VAT on cooking oil was reduced to stabilize prices. However, supply constraints led to a price hike in December, raising bottled soyabean oil prices to Tk 175 per liter.
Now, the Bangladesh Edible Oil Traders’ Association has proposed another increase, with discussions underway for a more moderate Tk 11 hike.
At the retail level, reduced commissions and stricter credit policies have led to limited availability of bottled oil in local shops. While key markets under government oversight, such as Karwan Bazar and Shantinagar, maintain steady supplies, many stores in less-monitored areas like Jatrabari and Dholai Par report shortages.
Retailers suspect traders are deliberately restricting supply to justify a price hike before Ramadan, a pattern seen in previous years. In April 2024, similar price adjustments occurred before the fasting month.
Commerce Adviser Sheikh Bashir Uddin met with traders on Jan 23, but no final decision has been reached. The commerce ministry has sought input from the Bangladesh Trade and Tariff Commission, whose report is pending.
