The government has increased the price of bottled soybean oil by Tk 8 per liter, setting the new retail price at Tk 175, effective immediately. Loose soybean oil has been priced at Tk 157 per liter.
The decision came after a two-day negotiation with business leaders at the Ministry of Commerce. Previously, bottled soybean oil was priced at Tk 167 per liter, and loose soybean oil was Tk 149 before tariff adjustments.
Mustafa Haider, President of the Bangladesh Edible Oil Association, announced the revised prices at a press conference held at the Ministry of Commerce on Monday. Commerce Adviser Sheikh Bashir Uddin and Commerce Secretary Mohammad Selim Uddin were also present.
Commerce Adviser Bashir Uddin attributed the price adjustment to a 20% increase in crude soybean oil prices in the international market. “The new prices take effect today,” he stated, expressing optimism that there will be no supply shortages after the price hike.
Commerce Secretary Mohammad Selim Uddin explained that the adjustment was based on the opening of letters of credit (LCs) and the weighted average cost of imported crude oil, which currently ranges from $1,170 to $1,180 per tonne. He also noted plans to review soybean oil prices monthly, aligning with international market trends.
The Secretary assured that the government would closely monitor the market to prevent overpricing and ensure adequate supply during Ramadan.
Mustafa Haider revealed that a special formula was used to determine the new prices, incorporating factors such as import duties, LC value, bottling costs, and processing costs. He said the new rate reflects an international price benchmark of $1,100 per tonne, although current market prices are closer to $1,200 per tonne.
Representatives from major soybean oil traders, including TK Group, City Group, Meghna Group, and Adani, attended the meeting.
Currently, only 20% of the country’s soybean oil demand, estimated at 1.60 lakh metric tonnes, is supplied in bottled form, with the remaining 80% sold as loose oil. The Ministry of Industries’ policy mandates bottling to ensure quality, but this guideline is not being fully enforced.
The government had previously adjusted soybean oil prices in April 2024 and revised import duties in October and November of this year.
