B Mirror Report: A shortage of edible oil has been reported in several areas of Dhaka, with prices increasing for both bottled and loose soybean oil amid concerns linked to the ongoing conflict involving the United States, Israel and Iran.

Consumers have alleged that retailers are charging higher prices for bottled oil, while shopkeepers claim that supply from companies has declined in recent days, creating a shortage in the market.

Traders said many consumers have started purchasing larger quantities of oil than usual due to fears that prices may rise further. At the same time, they claim the supply from companies has decreased, causing a shortage of bottled oil in many shops. Retailers also said that the commission they previously received from dealers has been reduced, lowering their profit margins.

A visit to markets in Mugda, Maniknagar, Malibagh and Moghbazar areas found that many grocery shops had limited stocks of 1-litre and 2-litre bottled oil compared with the existing demand. While some well-known brands were available in small quantities, lesser-known brands were largely missing from store shelves.

A buyer named Sabuj, who came to purchase oil from Maniknagar Pukurpar, said he could not find a one-litre bottled oil after visiting three shops and eventually had to buy loose oil instead. He said the price of loose oil has also increased, reaching Tk205 per kg.

Market observations show that the maximum retail price (MRP) of a 5-litre bottle of soybean oil is Tk955. Previously, retailers used to purchase the bottle from dealers at around Tk930 and sell it at Tk940, earning a profit of about Tk10. However, over the past three to four days, retailers said they have been buying the same bottle at around Tk950 and selling it at Tk955, meaning the dealer-level price has increased by about Tk20, reducing retailers’ profit to about Tk5. Consumers are also paying Tk5–10 more than before.

Meanwhile, the price of loose soybean oil has also increased. In neighbourhood shops, loose soybean oil is currently being sold at Tk200 to Tk205 per kg, which was previously available at Tk195 to Tk198 per kg.

According to retailers, the supply of bottled soybean oil has been comparatively low in the market for about a month, with the shortage worsening over the past few days. They said the situation has been caused by reduced supply from companies and increased consumer demand driven by fears related to the Middle East conflict.

However, edible oil producers have denied any supply shortage, saying they have increased production to meet demand.

Taslim Shahriar, deputy general manager of Meghna Group, which produces Fresh brand soybean oil, told the media that the company supplied a large volume of oil in January and February and has also imported additional oil to ensure adequate supply during Ramadan. He said the company is supplying more than 50,000 tonnes of oil per month, adding that there should be no shortage in the market.

Biswajit Saha, executive director of City Group, said the company has not reduced supply. He noted that some smaller companies are facing difficulties importing oil due to complications related to letters of credit (LC). He also said increased demand during Ramadan and stockpiling by some consumers may have contributed to the current situation.