Costly cooking oils get yet costlier as the government raised maximum retail price of soybean oil by Tk 8.0 a litre to Tk 175, amid a sudden market crisis.
Loose soybean-oil MRP has been fixed at Tk 157 a litre, commerce adviser Sheikh Bashir Uddin announced at a press briefing about the new pricing decided at a meeting with the local refiners and edible-oil traders held at the secretariat.
However, bottled soybean oil was found selling at Tk 185-200 a litre until Monday evening, consequent upon a surprise 'disappearance' of the essential cooking item.
The commerce adviser of the post-uprising interim government explains the crisis and the price-hiker by saying that price of edible oils increased 20 per cent on the international market.
"As a result, local small traders have been hoarding. Many thought that the price would increase in the future."
The new rate has been determined after a realistic analysis by taking into account the overall situation, added the businessman-turned commerce adviser.
However, a report published in The Financial Express on December 8 said cashing in on the situation, many unscrupulous traders were supplying counterfeit bottled oils and selling those for Tk 200 a litre even though the government-approved MRP is Tk 167.
The FE also discovered a company called Rupali Elish, which is marketing bottles resembling the packaging of Adani-Wilmar's Rupchanda-brand oil.
In the meantime, on April 18, the big-business refiners increased edible-oil prices with the commerce ministry's nod. They raised the prices by 4.0 a litre to Tk 167 a litre.
Also, the retail prices of loose soybean oil were set at Tk 149 per litre with a Tk 2.0-per-litre increase.
Local refiners in recent months had pressed the government several times to increase edible-oil prices in the light of the substantial price rises on the international market, industry-insiders say.
Bangladesh Vegetable Oil Refiners' and Vanaspati Manufacturers' Association (BVORVMA) urged the commerce ministry in June and November this year, and also in-between, to adjust soybean-and palm-oil prices.
They had argued that the oil industry was facing losses.
Crude soybean-oil prices on the international market were around $1000-1050 per tonne in April, which shot up to $1,200 now, said BVORVMA.
Meanwhile, in a recent report, the home ministry sounded alarm about a possible edible-oil crisis during the holy month of Ramadan in March next year and suggested ensuring an adequate stock of the key essential.
It recommended for the commerce ministry and all divisional commissioners to prepare for facing the situation by taking stern action against hoarders and profiteers with the aid of mobile courts and the Directorate of National Consumer Rights Protection.
The ministry reminded that various syndicates of producers, importers, and dealers hike edible-oil prices by pressuring the government and also control the market at their sweet wish.
The government recently reduced VAT on the import, processing, and trading of soybean and palm oils to lower their prices, responding to the demands of refiners and importers.
The finance ministry announced VAT exemptions at the import and production stages of edible oils in two separate notifications on October 17 in major fiscal interventions.
The VAT on local production and trading of soybean and palm oils was waived, while that on refined and crude soybean and palm oils at the import stage was reduced from 15 per cent to 10 per cent.
The facilities remain effective until December 15 this year.
The country's annual demand for edible oils is 2.4-2.5 million tonnes, with over 95 per cent met with imports. In FY24, the country imported around 2.3 million tonnes of non-refined edible oils, said the commerce ministry.
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