Bangladesh hikes bottled soyabean oil prices by Tk 14 a litre

The price of soyabean oil was previously raised on Dec 9

The interim government has raised the price of soyabean oil by Tk 14 per litre based on global market conditions and the tariff commission's formula, according to Commerce Advisor Sheikh Bashir Uddin.

The price of bottled soyabean oil has been set at Tk 189 per litre, while unpackaged oil will cost Tk 169 a litre.

The price of bottled soyabean oil was previously raised to Tk 175 per litre on Dec 9.

On Sunday, Bashir Uddin said: “We’ve revised the prices of soybean oil based on the international market and tariff commission formula.”

“According to the formula, each litre of [soyabean] oil costs Tk 197. But we set the price after discussing it with industry stakeholders.”

Citing the withdrawal of tax exemption benefits as the reason for the price hike, the advisor said, "The government exempted tax for cooking oil. This caused a Tk 5.5 billion drop in revenue collection per month."

“We have limitations in granting revenue exemptions to meet operating expenses of the government. A tax exemption of about Tk 20 billion was granted with Ramadan in mind. The tax exemption for soyabean oil has been withdrawn for now."

The government's decision to cut cooking oil excise duty before Ramadan to keep the prices affordable expired on Mar 31. Mill owners proposed raising prices before that, suggesting a Tk 18 hike for bottled and Tk 13 for loose soyabean oil.

The traders announced that the new prices have been effective from Apr 1, the day after the tax exemption on cooking oil had expired.

On Mar 27, the mill owners’ organisation sent a letter to the commerce ministry and Bangladesh Trade and Tariff Commission.

At the end of the Eid holidays, the traders discussed oil prices with the government last week.