The price of edible oil has come down in the international market, but against the backdrop of the high dollar rate, oil prices are not reducing in the country’s local market.
Last March, the price of soybean rose to a record average of about USD 2000 per ton in the world market. But now it is slowly declining. This week the price has come down to USD 1760.
However, the reduction is not being reflected in the country’s market. Soybean and palm oil are being sold at higher prices. Importers claim that the dollar has risen despite a slight drop in world oil prices. As a result, import expenditure has remained the same. That is why prices are not going to reduce in the country’s market.
Visits to different retail markets in the capital on Monday revealed that loose soybean oil was being sold at Tk 180 as before. Bottled soybean was being sold at Tk 198 per liter. And a five liter bottle cost Tk 975 to Tk 980.
In the space of a week, the price of palm oil has come down a bit. It is being sold at Tk 165 to Tk 170, a reduction of at least Tk 5 to Tk 7 per liter.
Bangladesh Vegetable Oil Refiners and Vegetable Manufacturers Association President Md. Mostafa Haider told the media, “We will not have the immediate effect of oil price reduction in the international market. The prices in the world market have not decreased that much and our existing dollar rate is also higher. In addition to this shipping cost is also associated with the price. However, if the price of edible oil falls in the world market, the issue of rescheduling the price in the country’s market will be considered in consultation with the government.”
At present the demand for edible oil in the country is about 20 lakh tons. The lion’s share of it is imported. Soybean is in high demand among the edible oils used in cooking. Reliance on palm oil for commercial use is high.
The edible oil market has been in turmoil for more than a year now. The situation is further clouded by the decision by Indonesia, a major supplier of palm oil. However, these countries have now changed their decision.
In order to provide relief to the consumers, the price was reduced by Tk 8 per liter after the government withdrew all kinds of VAT and duties on edible oil by keeping five percent before Ramadan. At the same time, the government is also looking forward to creating alternative ways to meet the oil demand of the country.