Soybean oil prices cut by up to Tk 6 a litre
Edible oil refiners have cut soybean oil prices up to Tk 6 a litre though the consumers rights organisation said the rates should have been reduced by at least Tk 30 amid falling prices of the item in the global market.
Yesterday, Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers' Association reset the highest retail price of loose soybean oil at Tk 180 a litre, down from Tk 185.
It refixed the highest retail price of one-litre bottled soybean oil at Tk 199, down from Tk 205, and a five-litre bottle at Tk 980, down from Tk 997.
The new prices take effect today.
This is the first time in the last couple of months that edible oil refiners have reduced prices. Since February, edible oil prices rose up to Tk 55 a litre as refiners hiked prices in phases in line with spiralling prices in the international market.
Tapan Kanti Ghosh, senior secretary at the commerce ministry, said the cut in oil prices was in discussion over the last few days.
Earlier, Bangladesh Trade and Tariff Commission recommended cutting edible oil prices, which started declining in the global market late May, he said.
The price evaluation committee on basic commodities under the commerce ministry suggested reducing the prices in consultation with importers, refiners, wholesalers, added Tapan.
Ghulam Rahman, president of the Consumers Association of Bangladesh, said the prices have not been reduced in keeping with the rates at which prices have come down in the international market.
"Taking into account the overall situation, I think the prices of [Soybean] oil should have been cut by 15 percent [Tk 30] a litre in the domestic market."
Citing data from Reuters, Bangladesh Trade and Tariff Commission said the price of crude soybean oil fell 26 percent in Argentina in a month. It fell to $1,464 a tonne on June 22 from $1,970 a month ago. Palm oil price also fell by 27 percent to $1,230 from $1,690.
Edible oil prices in Bangladesh depend on international price movements, as up to 90 percent of the annual demand of 20 lakh tonnes is met through imports.
According to retailers in Dhaka and Chattogram, one-litre bottle of soybean oil sold for Tk 196 yesterday and five-litre bottle for Tk 980-990, while loose soybean oil sold for Tk 175-180 a litre.
Shafiul Ather Taslim, director of TK Group's finance and operations wing, said oil prices have been reduced keeping in mind the decline in its prices in the global market, flood situation and the Eid-ul-Azha.
"It appears from the declining trend in edible oil prices in the global market that the prices will decrease further in the coming days. But the products that we are selling in the market now were purchased at a higher price …" he added.