Soybean Oil Supplies Improve Amid Regional Volatility

Supply chains for bottled soybean oil in Dhaka have shown signs of modest recovery following a period of acute scarcity. While a definitive resolution to the shortage remains elusive, a survey of the capital’s major trading hubs—including Karwan Bazar, Mohammadpur Town Hall Market, and Chandrima Kitchen Market—indicates that marketing companies began releasing larger consignments on Monday night.

Market Availability and Pricing Dynamics

In Mohammadpur’s Chandrima Residential Area, the availability of prominent brands such as Pusti, Teer, and Grihini has improved. Most retailers are adhering to the maximum retail price (MRP) printed on the packaging, with 2-litre bottles typically retailing for 400 BDT. However, the loose (unbottled) oil market remains under significant pressure. The price of loose soybean oil has surged by 4–5 BDT per litre over the past week, currently trading between 198 BDT and 200 BDT, up from the previous range of 193–195 BDT.

Table: Comparative Fuel and Oil Market Snapshot

The Logistics Bottleneck

Despite the slight uptick in deliveries, retailers like Nure Alam of Mohammadpur Town Hall Market suggest that the supply is only meeting roughly 50% of the actual demand. The primary obstacle appears to be a logistical crisis linked to the broader energy shortage. The Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association recently alerted the Ministry of Commerce that refining companies are unable to utilise half of their transport fleets due to a lack of fuel. Without guaranteed access to diesel, the distribution of edible oil from refineries to city depots remains precarious.

Consumer Behaviour and Geopolitical Stress

The ongoing conflict in the Middle East has triggered a wave of “panic buying” among Dhaka’s residents. Fearing that international disruptions will lead to a total market collapse, many consumers are stockpiling 5-litre canisters, which has effectively wiped out stocks of larger containers. Retailers noted that while 1-litre and 2-litre bottles are arriving in small batches, the larger family-sized packs remain almost non-existent on shop shelves.

The situation remains a delicate balancing act between international crude oil prices, local transport capabilities, and consumer sentiment during the Ramadan period.