Edible oil refiners in Bangladesh have proposed raising soybean oil prices by Tk 14 per litre, citing rising international raw material costs and higher domestic fuel and transport expenses. The proposed adjustment would affect both bottled and loose soybean oil, potentially increasing household spending on an essential cooking ingredient ahead of Ramadan.
Under the proposal, the maximum retail price of bottled soybean oil would rise from Tk 204 to Tk 218 per litre. The price of a five-litre bottle would increase from Tk 1,000 to Tk 1,070, while loose soybean oil would rise from Tk 185 to Tk 199 per litre.
The request was submitted by the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association, which represents edible oil producers and refiners. The organisation sent a letter to the Ministry of Commerce and the Bangladesh Trade and Tariff Commission on 13 October, seeking a fresh price adjustment.
According to the association, international raw material prices have continued to climb over the past six months. In the letter, its executive officer, Mohammad Nurul Islam Mollah, said the price of raw materials had increased from US$1,300 to US$1,325 per tonne. Based on prevailing international prices and associated costs, the association estimated that bottled soybean oil would need to sell for approximately Tk 233 per litre to reflect the current cost structure.
The refiners also pointed to rising fuel and transport expenses within Bangladesh, arguing that these additional costs had increased the overall burden of processing and distributing edible oil.
The proposed increase follows the previous price adjustment on 2 September, when soybean oil prices were raised by Tk 5 per litre. Before that revision, a one-litre bottle cost Tk 199. The subsequent adjustment brought the maximum retail price to Tk 204.
In its latest letter, the association said the government had indicated during the September review that prices would be reconsidered again soon. However, the refiners claim that the absence of a further adjustment has forced companies to continue supplying the market while incurring losses.
The association proposed that the revised prices take effect from 25 October. However, the Ministry of Commerce did not approve the proposed increase, meaning the suggested rates have not been confirmed as new official retail prices.
The timing has drawn attention because of the approach of Ramadan, when demand for essential food products can rise as households prepare meals and traditional iftar dishes. Soybean oil is widely used in Bangladeshi kitchens, making its price an important consideration for families managing their daily food budgets.
The refiners have warned that delays in adjusting prices could disrupt normal supplies, particularly during a period of increased seasonal demand. Any disruption could place additional pressure on the market, although the extent of any potential impact will depend on supply conditions and the government’s eventual decision.
For consumers, the proposed increase would mean an additional Tk 14 for every litre of soybean oil purchased. A five-litre bottle would cost Tk 70 more if the proposed rate were approved. Such increases could put further pressure on household budgets, particularly for lower- and middle-income families.
The issue presents a challenge for policymakers, who must weigh refiners’ claims about rising costs against consumers’ need for affordable essential commodities. International raw material prices, domestic distribution expenses and the need to maintain a steady supply are likely to remain central to the price review.
For now, the proposal remains subject to government approval. The existing maximum retail prices remain the applicable reference points unless the authorities announce a revised rate.
