Traders seek to raise oil prices again
They want the new prices to take effect on 26 March
Highlights
- Traders want to raise bottled soybean oil prices from Tk139 to Tk150 per litre
- Price of five litres of bottled soybean oil from Tk660 to Tk735.
- They want mill gate price of non-bottled soybean oil to be set at Tk125 per litre, and palm oil at Tk115 per litre
- The national price monitoring and determination committee scrutinising the proposal
- Prices have been raised twice since mid-February
Edible oil traders want to increase the bottled soybean oil price from Tk139 to Tk150 per litre, citing instability in the global market, even though the government raised the price for a second time in mid-March.
The Bangladesh Vegetable Oil Refiners and Banaspati Manufacturers Association recently submitted a proposal to increase the price to the commerce ministry.
The proposal asks the government to raise the price of five litres of bottled soybean oil from Tk660 to Tk735.
Traders also want the mill gate price of non-bottled soybean oil to be set at Tk125 per litre, and palm oil at Tk115 per litre.
The national price monitoring and determination committee was said to be scrutinising the proposal.
Traders want the new prices to take effect on 26 March.
The government increased edible oil prices for the first time in mid-February. Prices were increased in mid-March again due to volatility in the international market.
TK Group Director (finance and operations) Md Shafiul Ather Taslim told The Business Standard the national price monitoring and determination committee is supposed to hold a meeting every 15 days to adjust prices to those of the global market.
"At the same interval, we also have to suggest oil prices that correspond to those of the world market. Oil prices keep rising in the international market," he added.
The commerce ministry said the recent free on board (FOB) price of unrefined soybean oil was $1,269 per tonne, and unrefined palm oil $1,034 per tonne, in the global market.
Traders said prices in the global market have risen by over 65% in the last six months.
Considering that, prices have not increased much in the country, they said.
According to the Trading Corporation of Bangladesh market analysis, the price of each litre of bottled soybean oil rose by over 25.58% in a year.
Taslim said there was no way but to increase oil prices as they had exceeded $1,300 per tonne in the world market.
The annual demand for edible oil in the country is about 20 lakh tonnes and consumption is highest around Ramadan.
If prices go up again before Ramadan, it will increase people's woes as they are already burdened with the rise in prices of rice and sugar.
