Since the interim government took office, edible oil prices have seen continuous hikes. On Tuesday, prices rose once again. The price of bottled soybean oil has been increased by 14 taka per liter, now set at 189 taka, while loose soybean oil went up by 12 taka, reaching 169 taka per liter.
Currently, a five-liter bottle of soybean oil is priced at 922 taka, and loose palm oil is also selling at 169 taka per liter.
To help meet local demand, two companies have already started producing edible oil, and another six to seven are in the pipeline.
Trade Advisor Sheikh Bashir Uddin explained that the price hike was necessary to increase government revenue. He added that the decision followed international market trends and the guidelines of the Tariff Commission.
While acknowledging the added burden on consumers, he said the effect would be temporary. With more businesses entering the market, increased competition could eventually lead to lower prices.
Previously, to stabilize the market, the government had reduced VAT on imported refined and crude soybean and palm oil from 15% to 5%. VAT exemptions were also offered at the local production and marketing stages. However, those exemptions expired on March 31.
