The government has rejected a proposal from a group of cooking oil traders to increase prices before the Eid-ul-Fitr.
Companies importing, processing and marketing cooking oil in Bangladesh urged the government to increase prices in a third proposal this year, reports bdnews24.com.
The government will not accept any price hike during Ramadan, the Ministry of Commerce said. Any company selling edible oil for an elevated retail price will face disciplinary action, AHM Shafiquzzaman, additional secretary of the commerce ministry, said on Monday.
Edible oil traders came up with a proposal to increase the local prices citing a global price hike, he said. The government, however, has no plan to increase edible oil prices before Eid, he said.
The authorities threatened to take necessary action against those companies increasing the prices defying the government order.
The traders proposed to increase the prices of bottled soybean oil to Tk 144 per litre, according to the ministry. Bangladesh Vegetable Oil Refiners and Banaspati Manufacturers Association leaders did not make any statement after the proposal was rejected.
In 2021, the government increased the edible oil price twice in four months due to the price hike in the international market. New prices were set once on Feb 17 and then on Mar 15. The traders, however, gradually increased the prices further in the open market.
Prices of unpackaged soybean oil crossed Tk 120 per litre, up from Tk 85-90 in 2020, while the value of bottled soybean oil rose to Tk 139 from Tk 95.
In a bid to control the prices especially in the month of Ramadan, the National Board of Revenue withdrew a 4 percent advance tax on imported soybean and palm oil on Apr 10.
Almost 70 per cent of the edible oil used in Bangladesh is palm. Prices of unprocessed soybean oil and palm oil have been increasing in the international market since July, according to the commerce ministry. Soybean oil is now sold for more than $1,100 per tonne, which was $800 earlier.