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Edible oil traders in Bangladesh are pushing for higher domestic prices, arguing that the increases approved by the government cover only a fraction of the cost pressures they face, even as international prices remain well above 2025 levels. With staged domestic adjustments and chronic delays in official reviews, importers warn that maintaining normal supply is becoming increasingly difficult.
International edible oil prices are currently 25 to 29 percent above the July–September 2025 average. Government policy mandates monthly reviews and revisions of edible oil prices, but in practice these reviews have not been carried out on schedule.
The country meets roughly 90 percent of its edible oil demand through imports. According to the World Bank's Commodity Pink Sheet, the average international price stood at $1,154 per tonne in April–June 2025, rising to $1,237 in July–September. Prices climbed further in 2026, reaching $1,740 per tonne in June, about 41 percent above the July–September 2025 average. Prices have since eased but remain elevated, at $1,658 per tonne in July, $1,638 in August and between $1,550 and $1,600 in September this year.
Mill owners and importers have repeatedly requested higher domestic prices to reflect the higher international levels. Weighing the impact on consumers, the government agreed on September 2 to raise prices by BDT 5 per litre, while assuring traders that another adjustment would follow shortly.
This was the second increase of 2026. The first came on April 29, when bottled soybean oil rose by BDT 4 from BDT 195 to BDT 199 per litre, the five-litre bottle climbed from BDT 955 to BDT 975, and loose soybean oil increased by BDT 4 to BDT 180 per litre. After the September 2 review by the commerce ministry, bottled soybean oil rose by a further BDT 5 to BDT 204 per litre, the five-litre bottle by BDT 25 to BDT 1,000 and loose soybean oil by BDT 5 to BDT 185 per litre.
Mill owners and importers say the government has approved less than a third of the increases they have proposed on each occasion. The commerce ministry has asked them to accept smaller rises, citing domestic market conditions, the risk of commodity price volatility and consumer interests during Ramadan and other sensitive periods. Traders also complain that promises of further adjustments have gone unfulfilled.
According to the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association, international edible oil prices surged after the country adjusted prices on December 8, 2025. In February 2026, the landed cost of imported soybean oil reached BDT 211 per litre, yet the government asked traders to avoid raising retail prices during Ramadan. After lengthy discussions, prices were raised by just BDT 4 per litre on April 29, and promises of a subsequent adjustment did not materialise.
Over the following three months, the cost of imported soybean oil reached BDT 217 per litre while the selling price remained at BDT 199, leaving traders with losses of about BDT 18 per litre, according to industry estimates.
At the September 2 meeting, the government initially proposed an increase of BDT 5 per litre, citing the overall economic situation and consumer interests. Traders objected, arguing that the small adjustment would leave importers with substantial losses and threaten normal supply. The government then assured them of a further adjustment soon, and importers accepted. The new prices took effect on September 3.
Supplies of bottled soybean oil have not risen as expected since then. Market insiders attribute the squeeze to the commerce ministry's preference for staged increases, which has prompted many companies to limit shipments while waiting for the next adjustment. Marketing representatives of leading companies have stopped visiting markets regularly, leaving retailers struggling to source edible oil. One- and two-litre bottles have become particularly hard to find, although five-litre bottles remain relatively available. In some areas, bottled soybean oil is being sold above the printed price, while demand for loose soybean oil and palm oil has surged.
The Director General of the Directorate of National Consumers' Rights Protection, Md Jahirul Islam, acknowledged the issue. 'We are contacting the importer companies concerned about supply being cut after the price rise,' he said. 'There is also a meeting this week at the commerce ministry with traders on the consumer-goods market as a whole. I hope a lasting solution can be found through discussions between the government and the traders.'
In the wholesale market, a maund (37.32 kg) of soybean oil is trading at BDT 7,500, up from BDT 7,200 a month and a half earlier. Palm oil has risen by BDT 300 per maund over the same period to BDT 6,600, while super palm oil is trading at BDT 6,800. Retail prices stand at BDT 208–210 per kilogram for loose soybean oil, BDT 175–180 for palm oil and BDT 190–195 for super palm oil.
Market insiders warn that efforts to hold edible oil prices down and keep the market stable are having the opposite effect on supply. As companies cut back, consumers are paying more than the printed price. Loose edible oil carries a fixed price, but without packaging to verify weight or volume, overcharging is harder to detect.
Mahmudul Hasan, deputy chief of the trade policy division at the Bangladesh Trade and Tariff Commission, said setting edible oil prices was not the commission's remit. 'Almost every month the commerce ministry asks us to review data on the international market alongside information from the importing companies and determine a reasonable price,' he added. 'We submit a report to the ministry as instructed.'
Mostafa Kamal, Chairman of Meghna Group of Industries, said demand for edible oil would continue to rise from next month and stressed the need to understand how normal supply compares with that demand. 'If the government fixes the price and the calculation against the international market points to a loss, why would importers bring in the goods?' he asked. Kamal also claimed that such policies had shortened the list of edible oil importers in the country.
Traders at Khatunganj, Bangladesh's largest wholesale market for consumer goods, say wholesale soybean and palm oil prices have risen by more than BDT 6 per kilogram in the weeks since the government raised edible oil prices. They argue that with international prices climbing and no regular adjustment at home, the impact is most visible in the loose-oil market. The government raised prices by BDT 5 per litre, yet loose soybean and palm oil have risen by BDT 6–7 per litre over the past month and a half.
Commerce Secretary Md Ataur Rahman Khan rejected complaints of delay or bureaucratic foot-dragging at the ministry over price adjustments.
Source: Daily Bonik Barta