In response to a market supply shortage, soybean oil refiners have announced an increase of Tk 8 per liter in prices after consultations with the government. The Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association (BVORBMA) disclosed the new pricing at a meeting held at the Ministry of Commerce conference room on Monday.

BVORBMA President Mustafa Haider announced that bottled soybean oil will now retail at Tk 175 per liter, up from the previous price of Tk 167, while loose soybean oil will be sold at Tk 157 per liter, compared to the earlier price of Tk 149.

Haider explained that the pricing mechanism involves calculating the average cost by adding three key values: ex-bond price, in-bond value, and the value of letters of credit (LCs) opened over the past month. Additional costs, including processing and packaging, are then factored in. This method has been in practice since 2011 and will continue to guide monthly pricing decisions in collaboration with the government.

He further mentioned that the global market price for edible oils has surged to approximately $1,200 per ton. The rising costs have created challenges for refiners, necessitating periodic price adjustments to reflect international trends.

At the same meeting, Trade Advisor Sheikh Bashir Uddin acknowledged that supply shortages of soybean oil have been reported in the media, causing concern among consumers. To address this, stakeholders and the Tariff Commission collaborated to reassess and realign the pricing structure to stabilize the market.

Bashir Uddin noted that the last pricing adjustment for bottled soybean oil was made in mid-April when the price was set at Tk 167 per liter. Since then, international prices have increased by more than 20%. This surge, coupled with speculative stockpiling, has exacerbated supply issues, leading to temporary disruptions in local markets.

He added that while an analysis of the current inventory suggests sufficient reserves, hoarding activities at various levels have contributed to artificial shortages. The government is actively monitoring the situation and working to curb such practices to ensure uninterrupted supply to consumers.

Soybean oil shortages have been an ongoing issue in many parts of the country, including the capital, with the problem becoming increasingly severe in recent months. The government and industry stakeholders aim to address these challenges through regular pricing reviews and stringent measures against stockpiling.