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Unilaterally announcing a fresh hike in edible oil prices last week, the refining companies have clearly defied the government's position on the issue, as the Commerce Adviser on Tuesday last denied having approved any such price hike. This hike in oil prices has taken place exactly three weeks after the edible oil price was increased last time on September 22 by the interim government. Notably, on that occasion, the oil companies' association, Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association (BVORVMA), demanded an increase in the retail price of soybean oil by Tk10 per liter. However, the government allowed a minimal increase by Tk1.0 per liter, which the oil companies seemingly accepted with reluctance. In consequence, the oil refiners, according to reports, even threatened to suspend imports and cut supplies of oil.
Against this backdrop, the edible oil refiners and importers association, whom the vice president of the Consumers Association of Bangladesh (CAB) termed an oligarchy, practically 'blackmailed' the government by effecting a per litre increase in the oil prices from Tk 3.0 (for loose soybean oil), Tk 6.0 (for bottled soybean oil) and Tk 13 (for palm oil) respectively. By increasing edible oil prices without consultation with the government, these edible oil market operators are acting as though they were a law unto themselves. In fact, they have been in that kind of mindset for a long seeing that the governments of the past, too, yielded to their stubbornness for reasons not hard to understand.
A look at the prices of edible oils over the last year would amply demonstrate how the oil companies could get away with their demand, with the result that the edible oil price curve has been on an ever-rising trajectory. Statistics maintained by the Trading Corporation of Bangladesh (TCB) show how the price of bottled soybean has increased in recent months. In just over a year, between September 2024 and October 2025, it has seen an increase from Tk 167 to Tk 195 per liter. Traders have come up with excuses, such as volatility of the international edible oil market, wars, disruptions in the supply chain, weakness of the taka against the dollar, and so on, to justify hikes in oil prices. But the government, in most cases, proved to be too pliant about accepting their demands. However, the consumers would like to see a change this time around from the interim government.
That is especially so when the edible oil companies are behaving in a manner that cannot be considered respectful of the law and, as such, unacceptable. True, the edible oil companies' cartel holds an immense sway over the market. Even so, they need to be mindful of the fact that they are dealing in an item that belongs to the category called essential commodities, and any arbitrary hike in their price has the potential to affect public life seriously. It is more so when the inflation is still high and the average person has not experienced any rise in their income levels over the years. The edible oil companies need, in that case, to consider striking a balance between profit and public interest. The incumbent government, on its part, to protect public interest, should also include representatives of the consumer public during future talks on any adjustment of edible oil price. However, in the face of the unilateral decision of oil price hike by the oil refiners, it is expected of the interim government, especially the commerce ministry, that it would put its foot down and make the edible oil association see reason.
Source: Online/OFA
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