Govt hikes soyabean oil price by Tk8 per litre

The Ministry of Commerce has decided to increase the price of soybean oil by Tk8 per litre, which means the price of bottled soybean oil will be Tk175 per litre from now on and a litre of loose soybean oil will cost Tk157.

Until now, bottled soybean oil was Tk167 per litre and loose soybean oil was Tk149.

Mustafa Haider, president of the Bangladesh Edible Oil Association, disclosed the new rates in the presence of Commerce Adviser Sheikh Bashir Uddin at the press conference after a meeting at the commerce ministry today (9 December).

Addressing the briefing, Bashir said the price of oil in the international market has increased by 20%, leading to stockpiling by local small traders as many of them had anticipated a price hike.

"Considering the overall situation, a realistic analysis was done, and the new price has been set accordingly," he said, adding the new prices would come into effect today.

The adviser expressed hope that there would not be a supply shortage of edible oil in the market after the new prices come into effect.

Mustafa said the current international market price of soybean oil is $1,200 per tonne. "New prices have been determined after several days of discussions with the commerce ministry."

He said a special formula was followed in this regard, which included import duties, LC value, bottling costs, and processing costs. After taking in all factors, the new price was set considering the international price at $1,100 per tonne.

Edible oil traders have proposed determining the price based on this formula once every month and the commerce ministry has agreed to this proposal, said Mustafa. The commerce adviser at the briefing also confirmed the matter.

Meanwhile, Commerce Secretary Mohammad Selim Uddin said that no decision was made regarding palm oil during the meeting.