Consumers in Bangladesh may face another rise in edible oil prices, as the Bangladesh Trade and Tariff Commission (BTTC) has recommended an increase of Tk 9.27 per litre for soybean oil.
In a notification on Monday, the BTTC said the proposed hike is driven by higher average Letter of Credit (LC) values, increased in-bond and ex-bond costs and a rising US dollar exchange rate.
The commission said the last price adjustment meeting on July 27 had set the price of bottled soybean oil at Tk 189 per litre, effective from August 3. However, subsequent volatility in international markets and a stronger dollar have significantly raised import costs.
International Market Influence
In the beginning of November, the international price of soybean oil reached $1,062 per ton, while palm oil hit $1,037 per ton, prompting the need for a fresh domestic price adjustment.
Proposed New Price
Based on the BTTC’s proposal, which uses a dollar exchange rate of Tk 122.60, the maximum retail price (MRP) for bottled soybean oil is recommended to rise from Tk 189 to Tk 198.27 per litre.
The commission also suggested increasing the price of open (non-bottled) soybean oil by Tk 8.85, bringing it to Tk 177.85 per litre.
According to data from the Trading Corporation of Bangladesh (TCB), bottled soybean oil prices in the country have already risen around 14 percent over the past year.