Soybean oil prices jump to Tk 200-205 a litre

The prices of soybean oil have increased by Tk 10-15 per litre in the market due to reduced supply by companies as well as poor monitoring by the government before Eid-ul-Fitr, traders say.
They say the supply of bottled soybean oil has almost stopped, while demand increased notably ahead of the festival, pushing prices up to Tk 200-205 per litre.
Wholesalers and distributors are charging around Tk 195-196 per litre, says Abidul Islam, a grocer at Sukrabad in the capital.
He says companies did not supply bottled oil as per the demand ahead of Eid.
"We are buying bottled oil from wholesalers in Chawkbazar and Moulvibazar at Tk 195 per litre (which is the retail price) against the official wholesale rate of Tk 192," he says.
He also says the retail price printed on bottles is Tk 390 for two litres, while the wholesale rate should be around Tk 385.
However, wholesalers are charging the tagged price, forcing retailers to sell at around Tk 400-405.
Meanwhile, due to the shortage of bottled oil, the demand for loose soybean oil has increased, raising its retail price to Tk 210 per litre.
"We are buying loose oil at Tk 204-205 per litre from Moulvibazar," says Guljar Hossain, a vendor at Rayer Bazar.
He says traders are releasing oil in smaller quantities.
Farhad Hossain, a distributor at Moulvibazar, says companies have almost stopped supplying oil for over a week.
He claims refiners are waiting for a price hike following a rise in global prices.
"They expect prices to increase after Eid, which is why they are not releasing oil in the market now," he says.
Attempts to contact leading companies for comments were unsuccessful on Tuesday.
Consumers Association of Bangladesh Vice President SM Nazer Hossain says a syndicate of companies not supplying oil is the main reason behind the price hike.
He also says weak government monitoring has worsened the situation.
He has urged the Directorate of National Consumer Rights Protection and the commerce ministry to take immediate action against companies and distributor syndicates that are making profits illegally and forcing people to buy products at artificially high prices.

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