Soybean oil: Refiners’ sneaky push for Tk 18 hike
Edible oil refiners in Bangladesh have proposed increasing the price of bottled soybean oil by Tk 18 per liter, raising it to Tk 193, and loose soybean and palm oil by Tk 13 per liter, setting the new price at Tk 170. This proposal, submitted to the Bangladesh Trade and Tariff Commission, is set to take effect from April 1, following the expiration of tax exemptions on March 31.
Edible oil refiners lobbed a grenade at Bangladesh’s holiday calm Thursday, pitching a Tk 18 hike per litre soybean oil. The Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association fired off a letter to the Tariff Commission on the last workday before the break, eyeing an April 1 rollout—conveniently when government offices snooze. Consumers, already stretched, brace for the pinch.
A holiday heist
The timing is no accident. With Eid holidays shutting desks till after April 1, refiners bank on no pushback. Their excuse? A duty-tax exemption lapsed March 31, jacking import costs.
The letter claims it is unavoidable—yet the Tariff Commission urged the National Board of Revenue (NBR) on March 18 to extend the break till June 30 for price stability.
No dice; the holidays hit first. “It’s pressure tactics,” an insider mutters, pointing to the last-minute move.
Legally, price bumps need government nods—refiners have long sidestepped that.
Past regimes saw them nudge rates via letters or outright hikes sans notice. This time, they are dangling a Tk 18 jump – bottled soybean oil from Tk 175 to Tk 193 per litre, unpacked soybean and palm oil from Tk 157 to tk 170—claiming tax relief’s end forces their hand.
Critics smell profit: the old concession saved Tk 11 per litre, so why Tk 18 now? That is Tk 7 extra per litre in their pockets.
A game of trust and taxes
Rewind to December 15: the government stretched VAT breaks on soybean oil imports, production, and trade till March 31 to keep it affordable.
Refiners did not play nice—prices did not drop; they climbed Tk 8 per litre, citing a “global spike” and staging a local “crisis.”
Now, with the tax break fading, they are leveraging it for a bigger grab. Abdur Razzak, Additional Secretary at the Ministry of Commerce’s Import and Internal Trade wing, is not buying it. “No meeting, no approval,” he told Jago News. “They can’t just hike it.”
Traders argue survival: extend the VAT break by April 1, and prices hold; lose it, and costs soar. One, cloaked in anonymity, told Jago News: “Global prices are up, trending higher for months. We padded the hike—can’t raise it again soon.” City, TK, and Meghna Group reps clammed up when pressed. Duty or not, that Tk 7 gap raises eyebrows—and questions.
Households feel the heat
Ruby Hussain, a Rampura mom, is not mincing words: “Staged hikes and fake shortages? Unacceptable.” She’s right—households face a Tk 100 monthly hit on oil alone. Bottled soybean oil’s new Tk 193 tag (Tk 935 for five litres) and unpacked oil’s Tk 170 leap sting deep post-Eid. “Buying’s a gamble now,” she sighs. “Another jump, and we’re cooked.” Her plea? Government, wake up.
A price too steep
This is not just oil—it is leverage. Refiners, cozy with past lax rules, test the interim government’s spine. The Tariff Commission’s stalled plea and NBR’s holiday nap give them runway. Will April 1 lock in Tk 18, or will regulators slam the brakes? For now, Eid’s glow dims—households tighten belts, and refiners count their cut.
To read more about Edible Oil News continue reading Agriinsite.com
Source : Jago News24
