Bangladeshi oil millers have been facing resistance from the government for increasing soybean oil prices

Tensions among Bangladeshi soybean mill owners have escalated recently as they have unilaterally increased the prices of edible oil, which has not been endorsed by the government of Bangladesh.

It was reported that the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association had communicated to the senior commerce secretary that the prices of soybean oil have been adjusted. According to the association, the new price for a one-litre bottle of soybean oil has been set at Tk 173, a five-litre bottle at Tk 845, and one litre of loose palm oil at Tk 132. Despite this notification, the government has not acknowledged the legitimacy of these price hikes.

The State Minister for Commerce, Ahasanul Islam Titu, expressed his disapproval of the mill owners' decision to raise the soybean oil prices, emphasizing that there was no justification for such increases. This statement came after the mill owners announced their new pricing.

Earlier in the year, the National Board of Revenue (NBR) had decreased the import duty on several essential commodities including edible oil by 5%, effective until April 15, in response to a request from the commerce ministry. This adjustment was intended to ease price pressures during the Ramadan period.

In a recent interaction with journalists at an event at Dhaka Reporters Unity, Titu reiterated that there was no possibility of reverting to the previous oil prices under any circumstances. He stressed that the mill owners were not permitted to raise prices in the manner they had announced.

Titu also mentioned that, following the expiration of the duty-exemption period, the Tariff Commission would need to review the international and import prices of oil among other factors before the Commerce Ministry could set the appropriate pricing levels.

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Further complicating matters, the state minister indicated his unawareness of any formal communication from the mill owners regarding the price increase. He committed to investigating the matter upon his return to the ministry, firmly stating that there was no allowance for such price adjustments.