Oil prices yet to fall as govt orders ignored

Retail prices of soybean and palm oil are not coming down in the capital as big companies continue to supply oil at higher prices going against a government directive issued earlier this week, kitchen market traders alleged.

Retailers said it is not possible for them to sell edible oil at reduced prices as suppliers continue to charge them high.

In the meantime, sugar prices, along with lentils, are finally showing signs of coming down in the wholesale market after being sold at extravagant prices for months. However, the effect is yet to be visible at the retail level.

Retailer blame big cos for higher oil prices

Following a meeting with the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association (BVORBMA) on 15 December, the government recently lowered the prices of soybean and palm oil by Tk 3-5 per litre.

Under the new directives, authorities lowered the maximum retail price of per-litre bottle of soybean oil at Tk 187 from Tk 190 and loose soybean oil at Tk 167 from Tk 172 per litre. The price of a 5-litre bottle of soybean oil has been set at Tk 906, down from T k925 previously.

Besides, the price of per litre palm oil has been fixed at Tk 117 from Tk 121.

The new prices came into effect last Sunday. But it has brought no change at the retail level.

Visiting the city’s kitchen markets on Thursday, The Business Post (TBP) found that a one-litre bottle of soybean oil was selling at Tk 190 per litre and a 5-litre bottle of soybean oil at Tk 925– the same prices as last week.

However, prices of loose soybean and palm oil came down by Tk 5-10 per litre compared to last week. On Thursday, loose soybean oil was selling at Tk 170-180 per litre, down from Tk180-190 last week.

Besides, the loose palm oil sold at Tk 145-150 per litre against its previous price of Tk 145-155 per litre last week.

Mustafizur Rahman, a retailer at Segunbagicha kitchen market, said, “Dealers are not supplying oil at the new rates, so we are forced to sell the oil at the previous prices.”

He also said there is an uncertainty about when oil will be available at the new rates as suppliers have not yet announced anything in this regard.

Sugar prices drops at wholesale level

After a prolonged period of supply crisis, the sugar market has finally begun to stabilise, albeit only at the wholesale level. Wholesale prices of sugar came down by Tk 4-5 per kg and lentils by Tk 2-3 per kg. The price drop, however, is yet to hit the retail level.

Sugar sold at Tk 107 per kg in the wholesale market on Thursday, down from Tk 112 per kg one week ago. The retail price of the essential commodity remained unchanged at Tk 115 per kg.

Meanwhile, local variety lentils sold at Tk 130 per kg at the Moulvibazar wholesale market in the capital on Thursday compared to Tk 132 per kg last week.

At the retail level, lentils price remained unchanged at Tk 140 per kg on the day.

Besides, prices of the other essentials including rice, egg, meat and flour were still high as last week. However, the price of some vegetables including tomato, potato and carrot come down by Tk 5-10 per kg at the retail level.