Millers want Tk 15 hike for a litre of soybean oil

Edible oil millers want to increase the price of soybean oil in the country’s kitchen market again after just one month of reduction.

The Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association proposed to increase the price by Tk 15 per litre this time.

To this end, the association sent a letter to the senior secretary of the commerce ministry on Wednesday.

In the proposal, the association said its members have decided to increase the price given the current increase of soybean oil in the international market and the abnormal depreciation of the taka against the dollar.

Tapan Kanti Ghosh, senior secretary of the Ministry of Commerce, confirmed Business Insider Bangladesh that edible oil traders have made a such proposal.

However, he said that whether the price should be increased or how much it can be increased is being reviewed and no decision has been taken yet.

He also said that the Bangladesh Trade and Tariff Commission will do the calculation and check the association’s papers, letters of credit and the price of dollars.

On October 3, the association reduced the price of bottled soybean oil by Tk 14 per litre and loose ones by Tk 17.

According to that price, bottled soybean oil is currently priced at Tk 178 per litre and loose at Tk 158 per litre. Similarly, a 5-litre bottle is being sold at Tk 880.

If the proposed increase of Tk 15 per litre is implemented, bottled oil prices will stand at Tk 193 per litre, the price of a 5-litre bottle at Tk 955 and open soybean oil at Tk 173 per litre.

However, the government has not yet taken a final decision on this matter.

The commerce ministry sources said, if traders propose to increase the price, it may take 15 days to verify the rationale of this hike.

The Bangladesh Trade and Tariff Commission monitors whether the price increase is reasonable. It files a report to the commerce ministry and the price is fixed accordingly.