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Amid soaring prices of essential commodities across local markets, edible oil importers and refiners have once again submitted a proposal to the government demanding an increase in edible oil prices.

In a proposal sent to the Ministry of Commerce, the refiners sought to increase edible oil prices by Tk 10 per litre, citing escalating raw material prices in the international market and higher transportation costs. Traders claimed that without a price adjustment, it is becoming impossible for them to continue importing oil while incurring continuous financial losses.

According to Commerce Ministry sources, no final decision has been made on the matter. The Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association initially submitted the price hike proposal on July 11. Although a meeting took place between traders and ministry officials last week, the discussions ended without any resolution.

Speaking on the issue, Shibir Bichitra Barua, Additional Secretary (Import and Internal Trade) at the Ministry of Commerce, confirmed receiving the proposal, adding that further review meetings with business leaders are underway before taking any final decision.

Under the new pricing structure proposed by refiners, bottled soybean oil is proposed to increase by Tk 10 to Tk 209 per litre from the current rate of Tk 199. A 5-litre bottle of soybean oil is proposed to be set at Tk 1,015, while loose soybean oil and loose palm oil are proposed to rise to Tk 188 and Tk 183 per litre, respectively. Refiners claim that import and freight expenses for bottled soybean oil have surged by Tk 18 to Tk 20 per litre, forcing them to sell at a significant loss under current price caps.

However, data from the Ministry of Commerce and the Bangladesh Trade and Tariff Commission (BTTC) reveal a noticeable gap between international market trends and the refiners' demands. BTTC figures show that crude soybean oil is currently trading at $1,191 per tonne globally—up slightly from $1,169 a month ago. Meanwhile, palm oil is trading at $1,162 per tonne, up from $1,145 a month prior.

While global prices have ticked upward, ministry officials feel the proposed hike in the domestic market is disproportionately high. Furthermore, tax duty reductions on essential goods were implemented in the national budget, following an earlier Tk 4 per litre tax adjustment on soybean oil in late April. Ministry sources emphasized that these tax benefits must be carefully calculated before approving any new retail rates.

Economists and market analysts warned that edible oil is an ultra-sensitive commodity. Any increase in its price directly impacts household cooking expenses and triggers a wider chain reaction, inflating food prices across restaurants and consumer markets. Critics point out that while refiners cite international price hikes as a pretext to raise domestic rates, they rarely reduce local prices when global rates fall.

The demand has sparked sharp criticism from consumer rights bodies. SM Nazer Hossain, Vice President of the Consumers Association of Bangladesh (CAB), termed the proposal completely illogical and unjustified.

He noted that at a time when people are already overburdened by soaring vegetable and rice prices due to flood disruptions, increasing edible oil prices would be like adding insult to injury.