Govt endorses soybean oil price kike by Tk 14
The government has approved a price increase of Tk 14 per litre for soybean oil and Tk 12 per litre for palm oil, as announced by traders last Sunday.
Effective immediately, the new prices reflect these adjustments.
The price of bottled soybean oil has risen to Tk 189 per litre, up from Tk 175 previously.
A five-litter bottle of soybean oil now costs Tk 922, compared to the earlier price of Tk 852.
Unpacked soybean and palm oil prices have been set at Tk 169 per litre, an increase from Tk 157.
The Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association issued a notification on Sunday to implement the revised prices. The following day, the Ministry of Commerce officially endorsed the new rates.
Speaking to reporters after a meeting with edible oil traders in the ministry, Commerce Adviser Sheikh Bashir Uddin confirmed the price hike. He clarified that while traders had announced the increase earlier, it was only finalised during today’s meeting.
"They cannot announce the price hike unilaterally," Bashir Uddin said. "If they did so before the final decision, it would be illegal. The price has been officially finalised today."
The meeting, held in the Commerce Secretary’s office, included representatives from major companies such as TK Group, Meghna Group, and City Group, along with officials from the Tariff Commission and the Edible Oil Factory Owners Association.
On March 27, ahead of Eid, mill owners proposed raising edible oil prices due to the expiration of the tax concession period and rising international market prices.
At the time, they sought to increase bottled soybean oil prices by Tk 18 per litre and open soybean oil by Tk 13 per litre. They intended to implement the hike starting April 1, following the end of the tax concession period. However, the Ministry of Commerce deemed any premature implementation illegal until a formal decision was reached.
Ultimately, a slightly lower increase than the initial proposal –Tk 14 per litre for soybean oil and Tk 12 per litre for palm oil – was approved.
Multiple rounds of discussions were held between the government and traders on April 6 and April 8, but no agreement was reached at the time. Following the association’s announcement on April 13, the government convened another meeting to finalise the prices.
Since early April, traders have consistently argued for a price hike, citing the expiration of duty-tax exemptions and global price surges. The edible oil association formally informed the Ministry of Commerce and the Bangladesh Trade and Tariff Commission (BTTC) about their proposed increases in writing. This led to weeks of negotiations and bargaining over the final rates.
Meanwhile, the Bangladesh Trade and Tariff Commission recommended extending the duty-tax exemption period for edible oil imports until June 30, aligning with factory owners’ demands. However, the National Board of Revenue (NBR) has yet to respond to this proposal.
The last adjustment to bottled soybean oil prices occurred on December 9, when the rate was set at Tk 175 per litre.
