Refiners try to raise edible oil prices again 

Concerns over an artificial shortage have resurfaced in the edible oil market as supplies of bottled soybean oil, particularly 500ml and one-litre bottles, have reportedly become scarce in several retail markets in the capital.

While two- and five-litre bottles are available at some shops, smaller packs have become increasingly difficult to find, forcing low- and middle-income consumers to buy larger quantities than they need. The situation has emerged amid fresh moves by refiners to raise edible oil prices again.

Edible oil prices have increased at least three times significantly over the past year in Bangladesh. In the first round, in October 2025, the price of bottled soybean oil was raised from Tk189 to Tk195 per litre. In April 2026, the price was increased by another Tk4 to Tk199, and most recently, in September, it was raised by Tk5 to Tk204 per litre. Thus, the price of bottled soybean oil has increased by Tk15 per litre in three rounds over the past year. Prices of loose soybean oil and palm oil have also increased several times during the period.

Despite the price hikes, however, supplies have not remained fully normal. A market inspection found that many grocery shops did not have one-litre bottles of soybean oil. While two- and five-litre bottles were available in some outlets, smaller packs were largely unavailable.

Retailers said they had repeatedly placed orders with distributors but were not receiving supplies according to their demand. According to some traders, only two or three companies were supplying the market and the volume was insufficient to meet demand.

A grocery retailer in Rampura alleged that companies were not supplying enough oil, creating difficulties for retailers. He also said their commission had been reduced to only Tk1 per litre.

The shortage of bottled oil has also pushed up the price of loose soybean oil. In different markets in Dhaka, loose soybean oil was selling at Tk205-Tk208 per litre, while palm oil was being sold at Tk180-Tk185. There were also allegations that some traders were opening bottled oil and selling it as loose oil at higher prices.

The supply shortage has come at a time when edible oil refiners are seeking another price adjustment.

The executive officer of the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association, Nurul Islam Molla, has reportedly submitted a fresh proposal to the commerce secretary seeking an adjustment in edible oil prices.

This means refiners are seeking another price increase only weeks after the previous adjustment.

Industry representatives have argued that international edible oil prices have increased and that import costs remain high because of the shortage of US dollars. They also claim that although the government has reduced duties and taxes on edible oil on two occasions, the reduction in import costs has not been sufficient.

Consumer rights activists, however, allege that supplies are being restricted deliberately to create an artificial shortage and push up prices.

SM Nazer Hossain, vice-president of the Consumers Association of Bangladesh (CAB), said attempts were being made to increase prices by restricting supplies and creating an artificial shortage in the market.

He alleged that domestic prices rise quickly whenever international prices increase, but prices in Bangladesh do not fall at the same rate when international prices decline.

The biggest question in the current edible oil market is why there is such a wide gap between import and supply data and the situation consumers are facing at retail markets.

A similar situation emerged in March 2025. A report by this correspondent at the time found that bottled soybean oil was in short supply even as refiners were seeking to increase prices.

According to Bangladesh Trade and Tariff Commission data cited in the report, Bangladesh's annual demand for edible oil is around 2.2 million tonnes. In January 2025, the country imported 117,000 tonnes of edible oil-the highest monthly import volume in six years.

Despite the relatively high level of imports, however, bottled soybean oil became scarce in the market.

Consumer rights activists at the time also alleged that supplies were being controlled to push up prices even though sufficient imported oil was available.

The importers, however, have offered a different explanation. They argue that higher international prices, the dollar shortage and increased import costs have put pressure on the domestic market.

Therefore, they say the situation should be assessed by taking into account not only supply management but also international prices, import costs and the overall domestic market mechanism.

The immediate impact of the edible oil shortage is being felt by consumers. Those unable to find one-litre bottles are often forced to purchase two- or five-litre bottles, requiring them to spend more money at once.

The situation is particularly difficult for low- and fixed-income households already struggling with the prices of rice, pulses and other essential commodities.

With the government’s subsidised TCB sales programme also having remained suspended for an extended period, low-income consumers have fewer opportunities to purchase edible oil at relatively lower prices.

The most urgent task now is therefore to restore normal supplies and determine whether the shortage is genuine or artificially created before approving another price increase.

If imports remain adequate but consumers continue to face shortages at the retail level, authorities need to identify where the supply chain is being disrupted and take action. Otherwise, every new attempt to raise prices will place an additional burden on consumers.