The latest Tk4 per litre increase in soybean oil prices on Wednesday followed a familiar pattern, with consumers alleging that edible oil disappears from the market ahead of every price hike.
By last Saturday, a clear shortage of bottled soybean oil had emerged across markets, leaving many unable to buy according to their needs, as most shops failed to meet demand.
Popular brands such as Pushti, Rupchanda, Fresh, and Bashundhara were largely unavailable.
Retailers said the supply of bottled soybean oil had dropped to less than half of normal levels.
Many consumers said this recurring shortage creates unnecessary suffering. They struggle to find the product and later have to buy it at a higher price.
Questions remain over why the market repeatedly faces a supply crisis just before a price adjustment, raising allegations of deliberate manipulation.
The government on Wednesday increased retail prices of bottled soybean oil to Tk199 per litre at the retail level from Tk195 per litre. Commerce Minister Khandakar Abdul Muktadir announced the new price after a meeting with edible oil traders.
The Vegetable Oil Refiners and Vanaspati Manufacturers Association follows a similar pattern each time by announcing a price hike first and then securing approval through a ministerial meeting, said Consumer Association of Bangladesh Vice-President SM Nazer Hossain.
“They do this repeatedly. First, an artificial shortage is created to justify raising prices,” he told TIMES of Bangladesh.
“Soybean oil would disappear from the market — and they were responsible for it. The shortages are deliberate, allowing them to later push for higher prices,” he said.
He added that once the scarcity is created, the government convenes a meeting with refiners, but instead of taking action, ends up approving their proposals.
Edible oil brands rejected the claims.
Bangladesh Edible Oil Ltd spokesperson Bindu Saha claimed even with a Tk4 per litre price increase, refiners would only reduce losses and still would not make a profit.
Asked why they continue operating despite losses, he said global prices fluctuate constantly.
“Amid this price volatility, if refiners are able to import one or two consignments at a lower price, it creates an opportunity to recover previous losses and return to profit,” he said.
He said even if a factory incurs a monthly loss of Tk5 crore, it can recover if it manages to import crude oil at a comparatively lower price within one or two months.
Asked about the shortage of edible oil in the market over the past one to two weeks and why shortages often appear whenever international prices rise, Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association President Mohammad Mustafa Haider denied any major shortage.
“I do not see any shortage. We have oil and we are supplying it,” he said.
Responding to allegations that dealers start hoarding oil whenever international prices rise because they expect local prices to increase, he said dealer-level hoarding was unlikely due to close monitoring.
On maintaining steady supply despite fluctuations in international prices, Haider said local pricing must remain aligned with global market conditions.
Addressing allegations that edible oil disappears from the market just before a price hike, he said this is often linked to speculation and rumours rather than actual shortages.
He said bottled oil already carries a maximum retail price, which makes manipulation difficult.
Former Director General of the Directorate of National Consumers’ Right Protection, AHM Shafiquzzaman, said the edible oil market has effectively come under the control of just four to five companies.
“They are the ones who ultimately control everything for consumers,” he told TIMES.
He alleged that since bottled oil prices cannot exceed the government-fixed maximum retail price (MRP), companies instead raise the price of loose oil and deliberately restrict the supply of bottled oil.
“As a result, consumers are trapped in a demand–supply cycle, which pushes prices up,” he said.
Shafiquzzaman further said the lack of effective government monitoring allows supply manipulation that creates market instability.
Institute of Chartered Accountants of Bangladesh CEO Shubhashish Bose said the sudden disappearance of bottled soybean oil after international price increases is linked to dishonest business practices.
“If businessmen act dishonestly, this can happen,” he said. “If petrol prices rise in the US and we immediately raise prices here without higher costs, then there is no justification for it,” he added.
