Despite the price of soybean oil increasing four times last month, BVORVMA mentioned that the new rates will be effective from December 3

Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association (BVORVMA) have proposed to increase edible oil prices yet again. 

The association proposed to increase the retail price of per litre bottled soybean oil to Tk172 from Tk160 and Tk820 for a five-litre container that currently sells for Tk720. 

According to the proposal, the retail price for a litre of loose soybean oil is also going to increase by Tk12 from the current market retail price of Tk136.

On October 19, the prices of edible soybean oil were increased by Tk7, taking it to Tk160 from Tk153 per litre.

Besides soybean oil, the price of palm oil is also going to increase to Tk129 from Tk118 per litre. 

Despite the price of soybean oil increasing four times last month, BVORVMA mentioned that the new rates will be effective from December 3.

Sources said the cause of this hike is the rise in oil prices in the international market, mostly caused by the economic disruptions from the coronavirus pandemic.   

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On the contrary, according to Dhaka Tribune’s report earlier this month, edible oil prices in the domestic market were rising despite the prices in the international market having gone down.

According to traders, the price of palm oil came down by Tk309 per maund (roughly 37kgs) in the international market, but instead, the price shot up by Tk400-Tk450 in the domestic market.

This is going to add a burden on the consumers, as the price of edible oil keeps increasing, according to analysts. 

At present, Bangladesh imports around 22 to 26 lakh tons of edible oil each year, including seven lakh tons being soybean oil and 14 to 16 lakh tons of palm oil.

More than 95% of the local demand is met through imports.