Soybean oil prices to decrease by Tk 10 from March 1

Edible oil refiners said today that soybean oil price would be cut by Tk 10 a litre from March 1 to pass on the benefit of reduced duty and value-added tax to consumers.

Consumers will be able to buy a one-litre container of soybean oil at Tk 163, down nearly 6 percent from the current price of Tk 173, according to officials of major commodity importers and processors.

"No decision has been taken to reduce the palm oil prices," said Biswajit Saha, director for corporate and regulatory affairs of City Group, one of the leading commodity importers and processors.

The decision came at a meeting between the commodity processors and officials of the commerce ministry. State minister for commerce Ahasanul Islam Titu asked the refiners to reduce the prices at the meeting.

On February, the National Board of Revenue lowered customs tariffs on rice, sugar and dates and removed the VAT on edible oil imports so that the prices of the four commodities fall, easing inflationary pressure on consumers.

In Bangladesh, inflation has persisted over 9 percent since March last year, eroding the buying power of the poor and the low-income groups.

Biswajit said the impact of the duty and VAT reduction is Tk 5 per litre, but as per the directive of the ministry it has been reduced by Tk 10 a litre.