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Edible oil refiners declare Tk10/litre hike

Staff Correspondent
16 Apr 2024 16:23:29 | Update: 16 Apr 2024 22:36:07
Edible oil refiners declare Tk10/litre hike
Representational Photo

Refiners have declared a Tk 10 per litre hike in retail edible oil price as the reduced value-added tax (VAT) benefit they have been enjoying for the last two months expired on Monday.

The Bangladesh Vegetable Oil Refiners & Vanaspati Manufacturers Association in a letter to the commerce ministry on Monday stated that they want to refix the retail price to Tk 173 for per litre of bottled soybean oil, Tk 845 for five-litre cans, and Tk 132 per litre for loose palm oil.

State Minister for Commerce Ahsanul Islam Titu however said there is "no chance" of hiking the price of edible oil.

Responding to journalists at a “Meet the Reporters” event organised by Dhaka Reporters Unity on Tuesday, Titu said, “The VAT withdrawal facility has ended. Prices will now be calculated through the Tariff Commission, and the National Board of Revenue will be informed about this.

“I have not yet received any such letter mentioning that the traders have increased prices.”

The NBR had cut VAT at import stage of soybean and palm oils to 10 per cent from 15 per cent through a notification on February 7 this year, and exempted the indirect tax at production and trading stage to rein in prices ahead and during the month of Ramadan.

This facility ended on April 15, reads a statement, adding that the association has increased the prices citing the expiry of the reduced VAT benefits.

According to TCB data, retail soybean oil was sold at Tk 160 – Tk 162 per litre in the capital markets April 16, which was Tk 180 – Tk 185 a litre compared year-on-year.

Before Ramadan on March 1, when the price of 1 litre of bottled soybean oil was reduced by Tk 10 to Tk 163, the price of 5 litres of bottled soybean oil was fixed at Tk 800.

At that time, the price of palm oil was not fixed because the price of palm oil was fluctuating in the international market. The companies fixed the price of palm oil this Monday.