Govt sees no justifiable reason behind edible oil price hike, businesses blame each other

Businesses have hiked edible oil prices at every level beyond the government-fixed rates although the stock in Bangladesh is sufficient enough to keep the market under control at least until Ramadan, the authorities say.

The businesses took advantage of ongoing volatility on the global market amid the Russia-Ukraine war to raise the prices of old stocks, the Directorate of National Consumer Rights Protection said in a meeting with associations of retailers, wholesalers and dealers on Tuesday.

The businesses blamed each other for the hike in prices. Retailers said they have to buy at higher rates from the wholesalers, who pointed the finger at the dealers. The dealers blamed the mill owners for a supply crunch.

The commerce ministry said that market manipulation led the customers to buy cooking oil at rates Tk 20 to 30 higher per litre than the government-fixed prices.

AHM Shafiquzzaman, acting director general of DNCRP and additional commerce secretary, asked the businesses not to trade in edible oil without a money receipt. He threatened to take legal action if the traders do not follow the order.

“We have intelligence that the stock of oil is sufficient. No one can raise prices before Ramadan. But tales of supply crunch are being spread. Some are trying to connect the Ukraine war with the domestic market. They are trying to take advantage of the situation.

"We won’t let that happen,” Shafiquzzaman said.

Seven companies, including Bashundhara, City, S Alam, TK, and Meghna groups, have a combined stock of around 200,000 tonnes of refined and crude edible oil, according to the commerce ministry.

Ships containing 150,000 tonnes of unrefined oil await unloading at Chattogram port.

Manzur Mohammad Shahriar, an official at the DNCRP, said the traders are blaming each other for the price hike, but it has become difficult to figure out who is telling the truth because none of them are keeping money receipt.

Retailers alleged the wholesalers of Moulvibazar in Old Dhaka are not giving them receipt after selling soybean oil at Tk 147 to 150 per litre.

Ajmal Hossain Babul, general secretary of Moulvibazar Traders’ Association, alleged the dealers are forced to sell at higher prices because they have to wait several days at the mill gates for the products.

The dealers were trading the products among themselves, which is also driving the prices. Some dealers, however, claimed they did not know such practices are illegal.

No representative of mill owners attended the meeting. The traders and the authorities agreed to sit for another round of discussion on Wednesday with the mill owners.