Edible Oil: Already dearer after price hike proposal

Wholesale and retail prices of edible oil in Dhaka and Chattogram have started rising since the end of last month when refiners proposed that the government increase the rates. 

Refiners on April 30 sought a 9.62 per cent hike, reasoning that a one-year value added tax (VAT) reduction benefit offered in March last year had expired.

Tap Here to Add The Daily Star As A Trusted Source

On December 18 last year the government set the price of a one-litre bottle of soybean oil at Tk 187 while loose soybean oil at Tk 167 and palm oil (super) at Tk 117. The price of a five-litre bottle of soybean oil was fixed at Tk 906.

The refiners sought raising the price of soybean oil from Tk 187 to Tk 205 per litre but this is not reasonable, informed an official of the Bangladesh Trade and Tariff Commission to The Daily Star on condition of anonymity.

Yesterday the price of soybean oil increased by Tk 80 to Tk 90 per maund (around 37 kilogrammes) while palm oil by Tk 150.

Abu Bakar Siddique, a wholesaler at Karwan Bazar, one of the biggest kitchen markets in Dhaka, said the refiners were charging higher prices.

On Tuesday soybean oil was sold at Tk 6,270 per maund whereas yesterday at Tk 6,350 to Tk 6,360, he informed.

Similarly, palm oil was being sold at Tk 5,000 per maund whereas it was Tk 4,850, he said.

The price of soybean oil increased by Tk 5 to Tk 10 per litre yesterday, said Hazi Mizan, a retailer at Karwan Bazar.

The price has been on the rise for the last two days due to apprehensions, said Abdul Hakim, a wholesaler of Chattogram Khatunganj market.

He informed that the price of palm oil has increased by Tk 200 per maund, from Tk 4,900 to Tk 5,100, in the last two days.

However, the price of soybean oil has increased by Tk 50 to Tk 100 and is being sold at Tk 6,700 to Tk 6,750 per maund, he said.

Abul Hossain, a retail trader at Karnaphuli Market in port city, said the price of palm oil increased from Tk 122-Tk 123 per kilogramme to Tk 128-Tk 130 in the last two days.

However, the price of soybean oil has remained unchanged, he said.