Soybean oil prices shoot up to Tk 200-210 a litre amid supply shortage

Prices of soybean oil have increased by Tk 10–15 per litre in the market due to reduced supply by companies as well as poor monitoring by the government just before the Eid, grocers said.

Traders said the supply of bottled soybean oil has almost stopped while demand increased notably following the festival, pushing prices up to Tk 200–205 per litre.

Wholesalers and distributors are charging around Tk 195–196 per litre, said Abidul Islam, a grocer at Sukrabad in the city.

He said companies did not supply bottled oil as per demand ahead of Eid.

 “We are buying bottled oil from wholesalers in Chawkbazar and Moulvibazar at Tk 195 per litre (which is originally its retail price), against the official wholesale rate of Tk 192,” he said.

He also said the retail price printed on bottles is Tk 390 per two litre, while the wholesale rate should be around Tk 385.

However, traders are charging the tagged price, forcing retailers to sell at around Tk 400-405.

Meanwhile, due to the shortage of bottled oil, demand for loose soybean oil has increased, raising its retail price to Tk 210 per litre.

 “We are buying loose oil at Tk 204–205 per litre from Moulvibazar,” said Guljar Hossain, a vendor at Rayer Bazar.

He said that traders are releasing oil in smaller quantities.

Farhad Hossain, a distributor at Moulvibazar, said companies have almost stopped supplying oil for over a week.

He claimed that refiners are waiting for a price hike following a rise in global prices.

 “They expect prices to increase after Eid, so they are not releasing oil in the market now,” he said.

Attempts to contact leading companies for comments on Tuesday were unsuccessful.

Consumers Association of Bangladesh Vice President SM Nazer Hossain said that a syndicate of companies not supplying oil is the main reason behind the price hike.

He also said weak government monitoring has worsened the situation in the edible oil market.

He urged the Directorate of National Consumer Rights Protection and the commerce ministry to take immediate action against companies and distributor syndicates that are making illegal profits and forcing people to buy products at artificially high prices.

Bangladesh consumes around 2.2–2.4 million tonnes of edible oil annually, about 95 per cent of which is imported. Ten major companies control nearly 90 per cent of the total supply.

tonmoy.wardad@gmail.com