Edible oil shortage looms as refiners push for price increase

A severe shortage of edible oil has emerged in the market, driven by the manipulative practices of unscrupulous traders.

Despite government-fixed prices—Tk 185 per litre for loose soybean oil and Tk 195 for bottled—retail rates have climbed, with bottled oil selling for as much as Tk 205 per litre. Loose palm oil is also being sold above its set price of Tk 162, reaching Tk 170–175 per litre.

Most grocery shops in the capital reported limited supplies on Thursday. Golam Ahmed, a grocer in Mohammadpur, said distributors had halted bottled oil deliveries for the past month, with his own stock running out on Monday.

According to Moulavibazar trader Hafizul Islam Rokon, refiners have proposed a price hike for soybean oil to the commerce ministry, a move backed by the Bangladesh Trade and Tariff Commission. He noted that refiners are awaiting a government decision and are likely to resume supply once prices are adjusted.

Refiners have recently suggested raising bottled oil prices to Tk 207 per litre, citing alignment with global market rates. However, the commerce ministry has responded negatively, instead instructing the Directorate of National Consumers Right Protection (DNCRP) to intensify market monitoring.

In an official notice, the ministry said it had received reports of traders charging excessive prices and directed relevant agencies to take immediate action.

Meanwhile, Consumers Association of Bangladesh (CAB) Secretary Humayun Kabir Bhuiyan attributed the situation to weak market oversight, alleging that a syndicate of dishonest traders is creating artificial shortages to drive up prices—an organised malpractice that must be curbed without delay.