USD appreciation bars getting benefit from global price fall: Tipu Mushi

Consumers are not getting the benefits of price fall of soybean oil in the global markets due to continuous devaluation of Taka against US dollar, said Commerce Minister Tipu Munshi.

The minister came up with remarks while speaking to the media after the cabinet meeting at the secretariat in Dhaka on Thursday.

“The soybean oil price dropped in the global market, but the dollar price surged in the country. As a result, the expected benefit cannot be attained. Although the tariff commission would verify the entire issue,” said Commerce Minister Tipu Munshi.

The tariff commission will sit with the traders soon. Oil traders have demanded an increase of Tk 20 per litre, whether it is justified or not, will be decided by the tariff commission within a week.

On July 20, bottled soybean oil price were reduced by Tk 14 per litre to Tk 185 and loose soybean oil were set at Tk 166.

Now the price of soybean oil has decreased in the global market. Soybean oil reached a high of $1,962 per tonne in May. It fell to an average of $1,751 in June and $1,533 in July.

Oil prices fell by $425 a tonne and 43 cents a litre during this period. The global price of oil per litre was $1.53 in July.

Meanwhile, the average inter-bank rate per dollar was Tk 87.51 in May. Now it has increased to an average of Tk 95. In this, the price per dollar has increased by Tk 7.49.

The minister drew attention to the increase in the price of goods in Dhaka on the pretext of increasing the cost of transport. The commerce ministry will not do it. The amount of increase is decided by the Ministry of Transport. There is further discussion as to exactly how much it should be, he said.

The price of fuel oil has been fixed in coordination with neighbouring countries, he also added.

The US dollar, the most widely used currency in international transactions, remains volatile around the world.

Amid the crisis in the country, Tk 25 more than the fixed rate of the central bank, every dollar is now being sold at Tk 120 in the open market.

On July 27, the price of the dollar rose to Tk 112 in the open market. After the central bank’s surveillance, it was reduced to Tk 108 for a few days. But, this week, the uptrend started again. Mentionable, Per dollar was Tk 115.6 in the open market on Monday.