Soybean oil prices rise by Tk 14 per litre
After weeks of negotiations between the government and edible oil production and marketing companies, a price hike of Tk 14 per litre for soybean oil has been announced.
According to the new pricing structure, bottled soybean oil now costs Tk 189 per litre, up from the previous rate of Tk 175.
The Bangladesh Vegetable Oil Refiners and Plantation Manufacturers Association confirmed this development in a press release on Sunday.
The association said that the new prices have been effective immediately since the announcement.
New pricing structure
- A five-litter bottle of soybean oil is now priced at Tk 922, compared to the earlier price of Tk 852.
- Open soybean and palm oil prices have also been increased, with the new rate set at Tk 169 per litter*, up from Tk 157.
This marks the first price increase for bottled soybean oil since December 9, when the cost was raised to Tk 175 per litre.
Background of the price hike proposal
On March 27, ahead of Eid, mill owners proposed raising edible oil prices again. At the time, traders sought an 18-taka-per-liter increase for bottled soybean oil and a 13-taka-per-liter hike for unbottled soybean oil. They intended to implement these changes starting April 1, following the expiration of the government’s tax concession on edible oil imports.
Traders justified the proposal by citing the end of the tax concession and rising prices in the international market. On the same day, the association formally informed the Ministry of Commerce and the Bangladesh Trade and Tariff Commission (BTTC) about their decision to raise prices. Since then, multiple rounds of meetings were held between government officials and traders, with intense bargaining over the final rate.
Negotiations and deliberations
Discussions intensified after the Eid holidays, beginning early last week. Key deliberations focused on whether the price of soybean oil should exceed Tk 190 per litre or remain below that threshold. Meetings were held on Sunday, Tuesday, Wednesday, and Thursday of last week. Despite ongoing negotiations, no consensus was reached until the latest announcement.
Meanwhile, the Bangladesh Trade and Tariff Commission (BTTC) recommended extending the import duty exemption period on edible oil until June 30, in response to demands from factory owners. However, the National Board of Revenue (NBR) has yet to make a decision on this matter.
Reason behind the price increase
The price hike proposal stems from the expiration of the government’s duty and tax exemptions on edible oil imports, which were introduced to keep prices affordable before Ramadan. This concession ended on March 31, prompting discussions on adjusting domestic prices to reflect increased production and import costs.
Despite resistance from consumer groups, traders argued that aligning local prices with global market trends was necessary to sustain the industry. The prolonged bargaining process reflects the government’s efforts to balance the interests of consumers and producers while addressing economic realities.
