Companies propose to increase soybean oil price by Tk 14 per liter

Companies propose to increase soybean oil price by Tk 14 per liter

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Refining companies have proposed to increase the price of bottled and unopened soybean oil by another 14 taka per liter, citing the rising cost of raw materials in the global market and the increase in transportation and fuel costs within the country.

The maximum retail price of bottled soybean oil per liter in the market is currently 204 taka. Now, the companies want to increase that price to 218 taka. In addition, they have requested to increase the price of a 5-liter bottle of soybean oil from 1,000 taka to 1,070 taka and the price of unopened soybean oil from 185 taka to 199 taka per liter.

The price of edible oil in the domestic market was last increased by 5 taka per liter on September 2. Earlier, the price of a one-liter bottle was 199 taka.

The Bangladesh Vegetable Oil Refiners and Bonaspati Manufacturers Association, an organization of edible oil production and refining companies, recently sent a letter to the Ministry of Commerce and the Trade and Tariff Commission on October 13, requesting a new price increase.

In the letter, the organization said that due to the increase in raw material prices in the international market and the increase in fuel and transportation costs at the local level, the Bangladesh Vegetable Oil Refiners and Bonaspati Manufacturers Association has decided to increase the price of bottled soybean oil by Tk 14 per liter. This new price will be effective from October 25. However, the Ministry of Commerce has not approved their decision to increase the price.

In a letter sent to the Ministry of Commerce and the Tariff Commission, Executive Officer of the Edible Oil Association Md. Nurul Islam Molla said that the price of edible oil in the international market has been continuously increasing for six months. The price per ton has increased from Tk 1,300 to Tk 1,325. If the cost is calculated according to the current international market price, the price of bottled soybean per liter stands at about Tk 233. Along with this, the pressure of fuel and transportation costs in the country has been added.

The letter also said that during the last price adjustment on September 2, the government had assured to quickly reconsider the price. But due to not increasing prices for a long time, edible oil supply is being kept normal at a loss. If a decision is not taken to adjust prices quickly, the supply system in the market may be disrupted, which will have a negative impact on the upcoming month of Ramadan, edible oil refining companies have expressed concern.

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Source: Online/GFMM