Bangladesh : Refiners seek further upward adjustment of edible oil prices
Bangladesh refiners have urged the Commerce Ministry to raise edible oil prices, citing high import and marketing costs. However, global forecasts from the World Bank and FAO suggest vegetable oil prices may fall in 2026. Analysts warn a hike could burden consumers, especially after December’s price increases.
Local refiners have sought an upward adjustment of edible oil prices amid forecast of decline in prices of the item in the international market, sources said.
In a letter sent to Ministry of Commerce (MoC), the Bangladesh Vegetable Oil Refiners’ and Vanaspati Manufacturers’ Association (BVORVMA) said: “There is an urgent need for the price adjustment of edible oil, taking its higher import cost and other in-bond and ex-bond expenses into consideration.”
The refiners also mentioned in its letter that the prevailing retail prices do not adequately reflect their import and other marketing costs.
It also warned that the supply chain of edible oil in the domestic market would be affected without adjustment.
However, available projections indicate an ease in the global price of vegetable oils in 2026.
According to the recent outlooks from the World Bank and the Food and Agriculture Organization, global commodity prices, including edible oils, are expected to decline this year.
Market analysts on the other hand hinted at possible increase in the palm oil output, particularly in Indonesia, alongside easing benchmark prices in Malaysia amid surplus supply.
Some of them predicted a fall in the global edible oil prices by nearly 7.0 per cent in 2026.
They were also critical about the refiners’ proposal for hiking edible oil prices.
On the other hand, the sector insiders argued that while the declines in the global prices are often slow to translate into domestic relief, local refiners move swiftly to seek upward revisions, amid higher administrative or financial costs.
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Officials at the commerce ministry confirmed that it had received the association’s letter, saying no decision has yet been taken to this effect.
If the price of edible oil is increased, it could create additional burden on the consumers, thus potentially fueling pricing of other essential commodities in the domestic market.
In December 07, 2025, the country’s refiners raised the price of bottled soybean oil by Tk 6.0 a litre to Tk 195 while palm oil prices were also hiked by Tk 16 a litre.
The price of loose soybean oil was increased by Tk 7.0 per litre also.
With the enhancement, the price of loose soybean rose to Tk 176 per litre from the previous rate of Tk 169 and that of palm oil to Tk 166 per litre from Tk 150.
The price of a five-litre bottled soybean oil was also fixed at Tk 955.
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Source : The Financial Express
