Mill owners raise cooking oil prices by as much as 32%

Mill owners have raised cooking oil prices by as much as 32 percent after consulting the government following a shortage during Eid-ul-Fitr.

Bottled soybean oil will now cost Tk 198 a litre, up from Tk 160, Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association said in a notice on Thursday.

The price of five-litre bottles of soybean oil has been fixed at Tk 985. Unpacked soybean oil has been raised by Tk 40 to Tk 180 per litre.

The mill owners raised the price of palm super oil by Tk 42 to Tk 172 a litre.The continuing woes for consumers over the lack of availability of cooking oil deepened as retail stores in Dhaka and the rest of the country were reportedly out of stock two days before Eid, which was celebrated on Tuesday. The shortage persisted on Thursday.

Although the companies running the mills imported 20 million litres of soybean oil before Eid, they said the newly arrived consignment cost them more than usual due to a hike in prices on the international market. Therefore, they needed time to consult the government before fixing new prices.

Some grocers have complained dealers refused to sell soybean and palm oil in bulk amid a global shortage caused by the Russia-Ukraine war that prompted many countries like Indonesia to halt export of cooking oil after domestic prices shot up.

As a result, the retailers cannot sell the favourite cooking oil to the customers who, out of desperation, have been buying mustard oil, sunflower oil and rice bran oil instead.

Though the government has already waived the value-added tax on imports of cooking oil to rein in prices, the retailers alleged they were forced to buy from dealers at a higher rate.

REASONABLE PRICE?

The mill owners said soybean oil prices had jumped from $1,200 to $1,800 per tonne on the international market and later stayed around $1,600, causing the hike on the domestic market.

“The mill owners have announced the price hike upon consultation with the commerce secretary [Tapan Kanti Ghosh]. The new prices will be effective from tomorrow [Friday],” said Shafiul Ather Taslim, a director of TK Group.

Secretary Tapan confirmed that the mill owners had informed him before the new prices were announced.

The authorities will calculate next week whether the prices were raised “properly”, he said.

“The prices were not raised for long one and a half months. [Global] prices have increased in this period, causing them [mill owners] losses. They won’t supply to the market if they continue to suffer losses.”

Tapan hopes the readjustment of prices, coupled with steps to stop illegal hoarding, will improve the situation.

Commerce Minister Tipu Munshi said the government understands well cooking oil prices have increased across the globe. “It’s a global crisis. Now oil is out of the market.”

He, however, alleged businesses at different levels cut supply as per their wish. “Let’s see what they do now.”

“We, the ministry, are also thinking about fixing a reasonable price.”