Although refiners have officially raised their soybean and palm oil prices, the retail rate in Chattogram remains the same as shopkeepers are still selling the cooking ingredient from previous stocks.
However, traders in the region expect retail prices to rise within the next day or two once new supplies arrive.
On October 13, the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association announced a new price structure for soybean and palm oil. They said the revised rates were set following consultations with the commerce ministry and align with global trends.
However, Kamal Hossain, public relations officer of the commerce ministry, said the government has not yet approved the price hike.
Refiners say this delay in approving the decision has created market instability, leaving them uncertain about the appropriate retail prices.
Earlier on April 13, the government set the retail prices of soybean and palm oil at Tk 189 and Tk 169 per litre, respectively. In September, the refiners’ association proposed a Tk 10 per litre price increase for both oils.
In response, the commerce ministry held a meeting on September 22, chaired by Commerce Adviser Sheikh Bashiruddin, and approved a Tk 1 per litre increase. However, the refiners’ latest announcement exceeds the government-approved increase, raising concerns among consumers and market analysts.
Mohammad Mustafa Haider, director of TK Group, told Times of Bangladesh that the price hike was necessary due to rising international market prices and other associated costs.
“We have not yet supplied soybean and palm oil at the increased prices, which is why soybean oil is still being sold at the previous rate,” he added.
As per the new rates, the price of bottled soybean oil has increased by Tk 6 per litre and loose soybean oil by Tk 8 per litre.
But despite the price hike, retail prices in several Chattogram markets have not yet reflected the new rates. Shopkeepers at several outlets in Kazir Dewri Bazar reported selling soybean oil at the old price of Tk 189 per litre, Tk 378 for 2 litres, and Tk 900–908 for 5 litres.
“Dealers have informed us that prices will increase with the next shipment,” said Mofizur Rahman Hiru, owner of Islam Traders at Dohazari Municipal Market.
“It will take a day or two for the new MRP-labelled bottles to arrive. Once those supplies reach us, retail prices will rise accordingly,” he added.
Meanwhile, wholesale prices of soybean and palm oil in Khatunganj, Bangladesh’s largest wholesale hub for consumer goods, have remained relatively stable.
Over the past three weeks, the wholesale price of soybean oil increased by Tk 30 per maund (roughly 41 litres), and palm oil by Tk 100 per maund, due to fluctuations in the global market.
As of October 15, soybean oil was selling at Tk 6,780 per maund, and palm oil at Tk 6,050 per maund. In comparison, soybean oil was priced at Tk 6,750 per maund, and palm oil at Tk 5,950 per maund as of September 23.
Md Alamgir Parvez, joint secretary of the Khatunganj Trade and Industries Association, said the refinery-level price adjustment hasn’t impacted the wholesale market yet because Khatunganj mainly deals in loose oil, not bottled.
“So, the prices of loose soybean and palm oil remain stable for now,” he added.
