Bottled soybean oil becomes costlier again as the government Thursday approved its price hike by Tk 4.00 to Tk167 per litre, ending duty relief amid inflation.
However, the rate of the unpacked edible oil got a minor cut by Tk 2.00 to Tk 149 a litre in the latest price adjustment done at the insistence from the refining and marketing companies.
Palm oil will sell at Tk 135 per litre.
At the same go, the price of 5-litre bottled soybean oil has been increased from Tk800 to Tk 818.
State Minister for Commerce Ahsanul Islam Titu announced the pricing decisions at the Secretariat, with effect from today (April 19).
Backtracking on their previous stance on a hike by Tk 10, the refiners came to a consensus with the commerce ministry to raise soybean-oil price by Tk 2.0 to Tk 4.0 a litre.
The commerce minister announced the new pricing rates of soybean and palm oils at a press meet in the ministry on Thursday morning.
Bottled soybean- oil rate has been set at Tk 167 a litre from Tk 163 a litre earlier. Loose soybean oil will retail at Tk 149, marking Tk 2.0-a-litre rise.
Earlier, on April 15, the Bangladesh Edible Oil Refiners and Vanaspati Manufacturers Association (BEORVMA) sent a letter to the commerce ministry to raise soybean-oil price to Tk 173 a litre following the discontinuation of the NBR's 5.0-percent VAT- exemption facility.
Later on April 16, state minister Ahsan Islam Titu told the media that he had no idea about the refiners' letter and the refiners would not be allowed to bring back the price to the previous level (Tk 173).
"Bangladesh Trade and Tariff Commission (BTTC) was working on the matter while the price would be fixed logically," he had said.
However, he told the reporters on Thursday that the refiners now set the new prices as per the cost analysis by the BTTC.
"The price was hiked by Tk 4.0 a litre because of the lapse of a duty facility and a hike in its international prices," said the state minister.
BEORVMA later sent a press release on the new pricing.
Contacted, Md Shafiul Ather Taslim, director (finance and operation), T K Group, told the FE that refiners were now paying Tk 28-30 a litre as VAT in various stages.
The amount was Tk 20-22 during the 5.0-percent exemption on VAT between February 7 and April 14 this year.
"Refiners have reached a consensus with the BTTC and fixed the new price rated," he said.
However, international soybean- oil prices declined by 35 per cent in a year as per global commodity portal.
The average price of crude soybean oil was US $ 990 a tonne, excluding transportation, in March 2024, according to 'Market Insider' portal.
Bangladesh consumes 2.2-2.4 million tonnes of edible oils annually of which it imports the lion's share of above 90 per cent.
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