Soybean oil still selling at previous rates

• Soybean oil with new rate has not yet hit market
• The product is being sold at previous additional rate in small shops
• In the wholesale market, old priced soybean oil sold at new price

Soybean oil was expected to be sold at reduced prices from Thursday, by deducting Tk14 per litre, in line with a price fall in the international market, but customers in retail markets found no such respite.

­­In retail markets, traders were selling bottled soybean oil between Tk190 to Tk200 per litre, despite the government setting soybean oil price at Tk185.

Customers expressed their resentments for not being able to buy the product with the government-set new price.  

However, retailers say one week more is needed for the soybean oil with a new price tag to reach market.

The government on 17 July slashed the price by Tk14 per litre although the prices of crude soybean oil in the international market have fallen by 32%.  As per the move, one litre of bottled soybean will be sold at Tk185, and 5 litres at Tk910.

Bangladesh Vegetable Oil Refiners and Banaspati Manufacturers Association announced that new priced soybean oil would hit the retail market from 21 July.

However, during visits to several markets of Rampura, Mirpur, Agargaon, New Market, Hatirpool of the capital on Friday, The Business Standard found that most of the shops were selling soybean oil at the previous price.

Agargaon's Taltola Bazar Sulab Bazar Store Md Sohail told The Business Standard, "The oil with the new price tag has not hit the shops yet. We bought the product at the previous rate, so we have to sell it at Tk200 per litre."

Abdus Salam, another shopkeeper of this market, told TBS, "I had to buy oil at the previous rate at Tk199 per litre even two days ago. We are now selling it for Tk190."

"The government-set price is Tk185 but it is not possible to sell at such a big loss," he said.

Belayet Hossain of Supti Store in Rampura Bazar told TBS, "There is also a supply shortage in stores as companies have not yet provided products with new price tags. Therefore, we have to sell the product at Tk199 per litre and Tk990 for 5 litres."

Sobhan Khan of Narayanganj store at Shantinagar Bazar told TBS, "Oil companies have not supplied new products yet. Two days ago, we had to buy oil at previous rates. We are in fear of fines also. So, we are selling a 5-litre soybean for Tk950-960 instead of Tk990."

Md Sharif, proprietor of retail shop Maa Enterprise at Karwan Bazar, told TBS, "As our wholesale market is here, we have to change when the price changes. Even though the bottled soybean oil has the previous rate, I have been able to buy them at the new price."

"We are selling Rupchanda Soybean oil at Tk185 per litre, Tk370 per 2-litre bottle and Tk910 per 5-litre bottle. But we bought the oil at the previous additional price," he said.

Nizam Uddin Tipu, proprietor of Akhi Enterprise, a dealer of Fresh Company, at Karwan Bazar, told TBS, "Most of our oil cartons here are of previous price but we are selling them at the current price. Only new cartons of 5-litre bottles of soybean oil hit the market."

Fresh company's soybean oil wholesale prices are – a 5-litre bottle Tk880, 2-litre Tk362 and 1-litre Tk181. Besides, loose soybean oil sold for Tk162 per litre at wholesale, he added.

Earlier, on 26 June, the ministry reduced the prices of bottled soybean oil by Tk6 to Tk199 per litre. Prices of soybean and palm oil are dwindling due to the declining prices in the international market.

Bangladesh saw a record price hike of Tk205 per litre of bottled soybean oil recently as the price of the essential commodity spiralled on the global market in the aftermath of the Russia-Ukraine war and the Indonesian ban on its palm oil export.

However, the price of soybean and palm oil in the international market has been continuously decreasing since last May. Currently, crude soybean is selling at $1,324 per tonne and palm oil at $866.75 per tonne.