Fuel price hike to impact commodity market: Sellers fear

The fuel price hike in the country may impact the commodity market by pushing up prices of vegetables and other kitchen items which can take effect from Saturday, according to several sellers.

They said prices of most vegetables and other kitchen items – including rice, chicken, eggs, onion, oil, lentils and sugar – may increase Saturday although the price of those items remained unchanged on Friday.

Lower income families fear they will suffer a lot if the price of daily essentials rise further amid the ongoing price hike of commodities.

Mahfuz Alam, proprietor of Fatema Rice Agency at Karwan Bazar, said, "The price of rice has not increased in the last one week. We fear that it may increase in the coming days due to the fuel price jump."       

The price of different brands of soybean oil was sold at Tk138 to 144 at Karwan Bazar wholesale market and it was sold at Tk153 to 160 at retailer level.

Oil distributor Md Mishu said, "The price of soybean oil might be increased. We are selling the current stock at the previous rate."

Consumer association of Bangladesh (CAB) also thinks that the commodity market may increase further for fuel price jump.

CAB President Ghulam Rahman said the government should go back to the previous prices of fuel. Otherwise, the situation of the low income group would be worsened.

On Friday, per kilogram of coarse rice sold at Tk48 to 50, medium and premium quality rice at Tk58-65 per kg at Karwan Bazar that was almost the same throughout the week. But coarse rice prices spiked by Tk2 per kg last week, according to the state-run Trading Corporation of Bangladesh (TCB).

Md Zakaria of Bosila, who works at a private firm, told The Business Standard, "Price of essentials -- including rice and oil—has increased two weeks ago. Besides, the price of LPG has also increased recently."

"Now, if the price of fuel, LPG cylinders goes up again, the suffering of those of us who depend on only a monthly salary will increase a lot. It is difficult for the lower middle class to cope with the extra cost of Tk2,000-3,000," he added.

Meanwhile, the local lentils are sold at Tk110-120 per kg at the local grocery shop on Friday which was Tk82-84 per kg at Karwan Bazar wholesale market.

Md Juel, manager of Ekota Trader, a wholesaler of lentils, told The Business Standard, "Still, there is no impact of the fuel price hike on the wholesale level."

Alauddin, a grocery owner in Dhaka's Shantinagar, told TBS as most of the companies usually stop the supply of their goods on Fridays. Grocers are selling oil, lentils, eggs and wheat at the previous rate.

On the day, Broiler chicken in Karwan Bazar sold at Tk160-170 per kg, layer chicken at Tk220-230, Sonali chicken at Tk300-320 per kg and chicken eggs Tk110-115 per dozen. However, the price of mutton was Tk900-950 per kg and beef Tk600 per kg.

"The price is almost the same as the last few days," said the trader.

In Kalshi Bazar and Karwan Bazar, potatoes sold at Tk25 per kg, onions at Tk50-60, chili at Tk90-110, cauliflower at Tk40-50 per piece and beans at Tk120 per kg.

Onion wholesaler Mostafa said as they had not paid any extra transport cost till Friday, so the onion price did not increase.

Shafikul Islam, a pick-up van puller at Karwan Bazar, said expect vegetables, 50% of trucks loaded with kitchen items did not enter the city from outside Dhaka due to strike.

Onion seller Jahangir Alam said they pay Tk15,000 as transport cost to buy onion from Rajshahi.   The transportation cost will increase to Tk18,000 due to fuel price hike, which will prompt onion price increase.