Refiners hike oil price without govt approval

• Soybean oil prices rise without approval
• One-litre bottles now retail at Tk 198
• Government says refiners lack legal justification
• Global market blamed for higher import costs

Refiners have reportedly once again increased the prices of soybean oil, even though the government says it has not authorised the hike in the essential commodity.

Retailers in Dhaka, Chattogram, and Barishal reported yesterday that a one-litre bottle of soybean oil is now selling at Tk 198, about 5 percent higher than a week ago. Five-litre bottles are priced at Tk 965, up Tk 45 or 5 percent from the previous week.

Market data from the Trading Corporation of Bangladesh (TCB) also confirmed the rise, with 5-litre bottles recorded at Tk 960, compared with Tk 910 a week earlier. Loose palm oil prices have similarly surged.

The latest increase comes amid persistently high inflation, which stood at 8.17 percent in October, adding financial pressure on households already struggling with rising living costs.

Speaking to the media at the Bangladesh Secretariat on Tuesday, Commerce Adviser Sk Bashir Uddin said the refiners' price hikes lack legal justification. "Traders raised prices without informing the authorities."

Retailers blame the big groups for the sudden hike.

"All brands have raised prices," said Hasibul Islam Ponir, a trader in Mirpur's Pallabi area.

Sagar Hossain, a retailer at Karwan Bazar, noted that customers frequently question sudden price spikes.

A market visit to Khatunganj, Kazir Dewri, Chawkbazar, and Choumuhani in Chattogram confirmed the increase, with major brands such as Rupchanda, Teer, Pusti, and Fresh selling five-litre bottles at Tk 965, up from Tk 920-Tk 922. One-litre bottles now retail at Tk 198, although newly priced stocks have yet to fully reach the market.

Mohammad Rafique, proprietor of Nabin Trading at Chattogra's Khatunganj, the country's largest wholesale market for consumer goods, claimed that refiners reduced supply ahead of Ramadan, contributing to the spike at the wholesale level too.

However, Md Shafiul Ather Taslim, director for finance and operations at TK Group, said the rise is driven by global market increase.

He said international prices rose by $150-$200 per tonne over the past two to three months. Import costs have also risen from $1,090 to $1,203 per tonne, affecting operational expenses.

"As a company, we have followed the law. We informed the Ministry of Commerce 15 days before the price adjustment and sought verification. Since the ministry did not respond or object, we proceeded within the legal framework," he said.

He added that without the ability to adjust prices according to global market conditions, companies risk heavy losses, struggling to pay bank loans, employee salaries, and operational costs. "Shutting down operations becomes the only remaining option."

According to the Bangladesh Trade and Tariff Commission, companies proposed the price hike on November 10, with a planned effective date of November 24. However, the government did not approve the bid.

Bangladesh's domestic consumption of soybean and palm oil in the 2024-25 marketing year, beginning in October, was estimated at 28.6 lakh tonnes, including 11.35 lakh tonnes of soybeans, with 85 percent imported, according to the US Department of Agriculture.