State Minister Titu rejects mill owners' proposal to increase cooking oil prices

The commerce ministry will determine the revised prices once the Tariff Commission sends its report, said Ahasanul Islam Titu

State Minister for Commerce Ahasanul Islam Titu has objected to the mill owners' initiative to increase cooking oil prices following the end of a period of reduced import duties.

The state minister made the remarks while speaking to the media at a Meet the Reporters event organised by the Dhaka Reporters Unity on Tuesday.

"The mill owners do not have the opportunity to increase the price of cooking oil under any circumstances," said Titu.

Back in February, the National Board of Revenue reduced the import duty on edible oil by Tk 5, prompting mill owners and refiners to agree on a price cut to support consumers during the month of Ramadan.

It was also decided that the revised prices would be effective until Apr 15.

Following the order, the price of bottled soybean oil was dropped to Tk 163 per litre, while the unpackaged form of the cooking oil was sold for Tk 149 per litre.

The state minister had applauded the mill owners' decision to reduce the price of daily commodities during Ramadan.

However, on Monday, the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association wrote to the Ministry of Commerce stating that the price of palm oil and soybean oil would return to its original price once the exemption period is over on Apr 15.

The revised prices will be in effect from Apr 16 and soybean oil will be sold at Tk 173 while a litre of palm oil will be sold at Tk 132. Consumers will be able to purchase a five litre bottle of soybean oil at Tk 845.

The state minister told bdnews24.com: "Now that the VAT concession has expired, the Tariff Commission will analyse the international price of oil, import costs and other factors to determine the revised prices. The commerce ministry will then decide the price of cooking oil after looking at the tariff commission report."

When asked whether the mill owners had bypassed the government to inform the ministry about the revised prices, Titu said, "I have not received any letter. I will go to the ministry and inquire about it. There is no way for them to increase the price."