The edible oil market has become volatile amid shortage of supply from refiners, as its prices have now surged to Tk 185-200 a litre.
Cashing in on the situation, many unscrupulous traders are supplying counterfeit bottled oil and selling them for Tk 200 a litre even though the government-approved maximum retail price (MRP) is Tk 167.
On Saturday, loose soybean oil was priced at Tk 185-190 per litre in the city, with many districts facing a shortage of the essential item.
Julhas Ali, a grocer in Rayerbazar, told the FE that distributors have stopped supplying bottled oil. "Many newly-established companies are supplying bottled soybean oil under various names. We are buying from them at Tk 194 and selling them at Tk 200," he said.
The FE also discovered a company called Rupali Elish, which is marketing bottles resembling the packaging of Adani-Wilmar's Rupchanda brand oil.
Rezaul Karim, a distributor based in Mohammadpur, said refiners have stopped supplying oil for the past one month. "Our one-litre and two-litre bottled oil is now out of stock," he said, adding that he still has some five-litre bottled oil left.
Reports from Rangpur, Rajshahi, and Khulna revealed shortages, with palm oil being sold at Tk 180-185 per litre.
Despite attempts, officials from TK, City, Meghna, Adani-Wilmar, Bashundhara, and S Alam could not be reached for comments over phone.
Speaking on condition of anonymity, a sales official from a company explained that the absence of two major companies (S Alam and Bashundhara) from the market, coupled with refiners' reluctance to sell oil at the current fixed prices due to soaring global prices has contributed to the market volatility.
"If the government raises the price, the companies will release oil from their reserves," he said.
At a recent meeting at the Bangladesh Trade and Tariff Commission (BTTC), refiners proposed putting up soybean oil prices to align with rising global rates.
A BTTC official said that the commission is preparing to send a proposal to the commerce ministry after reviewing the situation.
SM Nazer Hossain, vice president of the Consumers Association of Bangladesh, called on the commerce ministry and other agencies concerned to urgently meet refiners to resolve the issue.
"The reasons for the lack of oil supply or the refusal to release stock must be identified and addressed without delay," he said.
Supply chain expert Prof Rashidul Hasan urged the commerce ministry, the home ministry, and other agencies, along with the FBCCI, to step in.
"They should investigate whether any company is creating an artificial crisis," he said, adding that some companies have close ties with the previous government.
In mid-November, the home ministry sounded an alarm about a possible crisis of edible oil during the holy month of Ramadan in March, and suggested ensuring adequate stock of the key essential.
On November 14, the FE reported that the home ministry recommended the commerce ministry and all divisional commissioners to take proactive measures, including strict actions against hoarders and profiteers through mobile courts and the Directorate of National Consumer Rights Protection.
Bangladesh consumes 2.1-2.2 million tonnes of edible oil annually, of which 95 per cent is imported. Market experts said the previous government had created an oligopoly where a limited number of companies dominated import and trading of the total edible oil market.
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