B Mirror Report: Loose cooking oil was already selling for more than Tk 200 per kilogram prior to Eid-ul-Fitr. The price has increased even further in the days after the vacation, reaching Tk 210 per kg in some markets. In the meantime, bottled soybean oil is still sold for Tk 195 per liter.
Many stores in Dhaka’s various markets are out of bottled soybean oil, according to a poll. The marketplaces in the capital have been showing signs of scarcity since before Eid-ul-Fitr, so this shortfall is nothing new. Even retailers ran out of bottled soybean oil at one point. Supermarkets have gotten some supplies after the holiday, but they are restricting sales, giving each consumer a set quantity of bottles.
Vendors say that the ongoing conflict in the Middle East has disrupted imports of crude edible oil. As a result, prices for loose soybean oil at refineries have increased. Higher transportation costs due to fuel shortages have also contributed, affecting wholesale and retail prices. Additionally, various brands of bottled soybean oil are not available in their usual quantities, forcing vendors to increase the sale of loose soybean oil.
A survey of Mugda, Maniknagar, Motijheel, and Khilgaon areas shows that 1-liter and 0.5-liter bottles of soybean oil are largely unavailable in most shops. Limited stocks of 2- and 5-liter bottles are available in a few shops. Loose soybean oil is being sold at Tk 205–210 per kg, while loose palm oil is priced at Tk 185–190 per kg.
Aslam Sheikh, a vendor in Maniknagar market, said that dealers have reduced their profit margins on bottled soybean oil. “We sell at fixed prices to retain customers, but many companies’ oil is currently unavailable. Loose oil has been more expensive since before Eid, so we have to sell it at higher prices.”
At the ‘Shopno’ supermarket in Mugda, some bottled soybean oil of the Fresh and Teer brands is available. Staff said each customer is allowed to buy a maximum of two bottles.
According to the Trading Corporation of Bangladesh (TCB), over the past month, the price of loose soybean and palm oil has risen by 6% per liter. Compared to last year, loose soybean oil is 18% more expensive, and loose palm oil is 11% higher.
Domestic edible oil companies have reported that international crude oil prices have risen due to the Middle East conflict. On March 25, the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association submitted a letter to the Ministry of Commerce requesting price adjustments. However, without government approval, companies could not raise the price of bottled soybean oil.
Despite this, companies have increased prices at the dealer level, forcing some customers to pay higher rates at retail shops. In stores selling at government-fixed prices, vendors say their profit margins are low.
The shortage of bottled soybean oil has lasted nearly one and a half months. Consumers are unable to purchase the amount of oil they need. For example, a customer may want a 1-liter bottle, but only 5-liter bottles are available. Consequently, many low- and middle-income buyers have switched to loose soybean oil. However, the rising price of loose oil has also caused dissatisfaction among consumers.
