The Consumers Association of Bangladesh (CAB) on Wednesday strongly condemned the recent Tk 14-a-liter increase in bottled soybean oil prices, accusing traders of exploiting market conditions and misleading authorities to justify the hike.
Despite static or declining global soybean oil prices, the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association sought an increase of Tk 18 a litre, citing the discontinuation of VAT exemptions on imports and local production, said a CAB release.
Although the government reduced import VAT from 15 per cent to 5.0 per cent, traders proceeded with a price hike effective April 1 -- immediately after the tax waiver expired.
The Ministry of Commerce and the Bangladesh Trade and Tariff Commission approved the adjustment, raising soybean oil prices by Tk 14 and loose soybean/palm oil by Tk 12 a litre.
CAB Vice President SM Nazer Hossain slammed the decision, alleging that traders manipulated data to secure the increase.
"Global prices have remained steady or even dropped in recent months. Yet, traders presented false figures to push through this unjustified hike," he said.
Hossain accused traders of exploiting Ramadan demand by benefiting from regulatory gaps. "While the NBR lost Tk 20 billion in VAT exemptions, consumers saw no relief. Millers absorbed the benefits and still imposed inflated prices," he said.
He criticised the government's inaction against market manipulation, calling it "deeply regrettable," while focusing on unethical tactics like supply disruptions and artificial shortages used to pressure authorities into approving price increases.
Responding to claims that the hike would minimally impact households, Hossain warned of compounding inflation.
"If prices of essentials like rice, edible oil, onions, eggs, and vegetables keep rising, how will families cope? These hikes disproportionately hurt low-income groups," he said.
He also faulted the Bangladesh Trade and Tariff Commission for excluding consumer representatives and media from price review discussions.
"Edible oil pricing lacks transparency. A fair process must include all stakeholders," he asserted.
Urging the interim government to revise tariff policies, Hossain called for tax exemptions on essential foods to safeguard low- and middle-income households. "With stagnant wages and soaring inflation, relief is critical," he stressed.
Mr Hossain also condemned the government's failure to curb hoarding and price manipulation.
"Without strict reforms, traders will continue creating artificial crises at consumers' expense," he warned.
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