Edible oil price to go up

Edible oil prices in Bangladesh are set for another increase, as refiners formally announced a revised price structure following discussions with the Ministry of Commerce. The Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association confirmed the adjustments in a media release issued Sunday evening, with the new rates taking effect from Monday morning.

Under the revised pricing, a litre of bottled soybean oil will now retail at Tk 195, up from Tk 189. The price of loose soybean oil has risen from Tk 7 to Tk 176 per litre. A five-litre bottle of soybean oil has been fixed at Tk 955, an increase of Tk 33 from its previous rate.

Palm oil has seen the sharpest rise, climbing Tk 16 per litre to reach Tk 166.

The association stated that they made the adjustments "in consultation with the commerce ministry" to align with global market trends.

Refiners Previously Raised Prices without Approval

The fresh announcement comes weeks after a pricing dispute between the government and refiners. On 10 November, refiners sought approval from the Bangladesh Trade and Tariff Commission for a Tk 9 per litre increase, citing higher global prices. A second request followed on 24 November.

But with no formal approval from the ministry, refiners and marketing companies moved ahead unilaterally, raising the retail price of bottled soybean oil to Tk 198 per litre starting on November 24. New labels featuring the increased price were printed and circulated, effectively forcing consumers to pay more.

Commerce Adviser Sheikh Bashir Uddin publicly criticised the move, warning that traders could face punitive action if they adjusted prices without government approval. Show-cause notices were issued as officials summoned refiners to an emergency meeting on 4 December.

Following the discussions, the refiners partially withdrew the unauthorised increase and agreed to a formal adjustment through the trade body.

Legal Requirement to Notify Government before Price Hikes

Under the Control of Essential Commodities Act 1956 and the Essential Goods Marketing and Distributor Appointment Order 2011, producers and importers of essential items may revise prices through their associations.

 However, they must notify:

• The Commerce Ministry’s Monitoring Cell
• District administrations
• Upazila executive officers
• Refiners agreed to a formal adjustment through the trade body at least 15 days prior to implementing price changes.

Traders involved claim they complied with the procedural requirement, though the ministry has not publicly confirmed this.

A Long-Running Pattern of Pricing Friction

The edible oil market has experienced repeated volatility over the past year. In June 2021, a high-level pricing committee—comprising ministry officials and business representatives—was formed to align domestic oil prices with international benchmarks.

Although the committee approved a modest reduction in August amid falling global prices, refiners again attempted a price increase in October without government approval, prompting another intervention from the commerce adviser.

On Sunday, the refiners’ association reiterated that the latest price adjustment reflects international market conditions and was settled through consultation with the ministry.