Home ›› 19 Jul 2022 ›› Front
Despite soybean and palm oil prices on the international market falling 35 per cent in the last two and a half months, prices on the domestic market have yet to reflect this change.
This year, as of now, the domestic price of edible oil has only been reduced by a total of 10 per cent on two separate occasions.
The Trade and Tariff Commission recently recommended that the price of edible oil be reduced by Tk 16-20, but it has only been reduced by Tk 6-14.
The commission, under the umbrella of the commerce ministry, made the recommendation in its recent report that analyzed the international market price of edible oil and the country’s production costs.
On the basis of the report sent to the commerce ministry on Sunday, the ministry decided to lower the price of edible oil.
According to the report, in 2021, crude soybean oil was sold for between $1,050 and $1,280 per tonne and palm oil for between $980 and $1,150 per tonne on the global market.
In 2022, the price continued to increase till May. During this time, soybean and palm oil exceeded $2,000 per tonne.
However, prices of all types of edible oil started to fall again in May, a trend which still continues.
Currently, crude soybean oil is being sold for $1,300 per ton and palm oil for $1,000 per tonne on the global market.
In other words, in the last two and a half months, the price of crude palm and soybean oil has decreased by 30-35 per cent. However, this change has not been reflected in the price of edible oil in the Bangladeshi market, where prices have only decreased by 10–11 per cent in two phases.
The price of palm oil was reduced by Tk 14 on June 9 and Tk 6 on Monday, for a total of Tk 20 per litre. Before
June 9, the price of palm oil was Tk 172 per litre. So the price has fallen by 11 per cent.
As for the price of soybean oil, it was reduced by Tk 6 on June 26 and Tk 14 on Monday, for a total of Tk 20 per litre. Till June 25, the price of bottled soybean oil was Tk 205 per litre. So the price has fallen by 10 per cent.
In its report the trade and tariff commission recommended that the price of oil can be adjusted by 10 per cent from the current price, taking into account the high value of the dollar and increased transportation costs.
As per the report, the price of a litre of bottled soybean oil which was Tk 199, was supposed to fall by Tk 19.9 and the price of a litre of palm oil which was Tk 158, was supposed to fall by Tk 15.8.
However, the commerce ministry reduced the retail price of bottled soybean oil by Tk 14 to Tk 185 a litre and the price of palm oil by Tk 6 per litre to Tk 152 a litre.
