Soybean oil price up by Tk14 per litre

Consumers will now have to pay more for cooking oil as the price of bottled soybean oil has been increased by Tk14 per litre, bringing the new retail price to Tk189.

The hike follows a week of intense negotiations between edible oil mill owners and the government, and comes into effect immediately.

The Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association announced the new rates in a press release on Sunday.

As per the revised pricing, a five-litre bottle of soybean oil will now cost Tk922, up from Tk852. In addition to bottled oil, the price of loose soybean and palm oil has been increased to Tk169 per litre from the previous Tk157.

The last time bottled soybean oil saw a price adjustment was on 9 December 2024, when the retail price was fixed at Tk175 per litre.

Industry sources said that on 27 March this year, just before Eid, mill owners proposed raising edible oil prices, suggesting a Tk18 per litre hike for bottled soybean oil and a Tk13 increase for loose soybean oil.

They planned to implement the new rates from 1 April, a day after the expiry of the government’s tax exemption on edible oil imports.

On that same day, the association formally informed both the Ministry of Commerce and the Bangladesh Trade and Tariff Commission of their pricing decision.

The price hike proposal came as the government’s temporary tax relief – aimed at keeping edible oil prices stable during Ramadan – expired on 31 March. Following the Eid holidays, several rounds of meetings were held last week between government officials and business representatives to finalise the new pricing. Discussions were held on Sunday, Tuesday, Wednesday and Thursday, focusing on whether the new price would cross the Tk190 mark.

While negotiations continued over several days, no immediate consensus was reached during those meetings.

Meanwhile, even before the mill owners formally raised the issue, the Tariff Commission had already written to the National Board of Revenue (NBR), recommending an extension of the import-stage tax waiver on edible oil until 30 June. However, the NBR has yet to issue any decision on the matter.