Bangladesh Edible Oil Market Plagued by Price Instability

The edible oil market in Bangladesh is experiencing instability due to a mismatch between international and domestic prices. International prices have surged by 25-29% above the July-September average in 2025, but domestic prices have only been adjusted twice this year without being aligned with international levels.

Government policy requires monthly price reviews and adjustments, but in practice, these are not happening regularly. Traders submit proposals for increases, which are often rejected by the government due to concerns about consumer burden and commodity price instability.

The commerce ministry has proposed staged increases rather than a single large adjustment, leading many companies to limit supply while waiting for the next rise. This has resulted in shortages of bottled soybean oil, with prices rising by BDT 5 per litre on September 2. However, imports have not increased as expected since the new prices took effect.

Market insiders say that the government's efforts to hold edible oil prices down are having the opposite effect, leading to overcharging and instability in the market. The director general of the Directorate of National Consumers' Rights Protection acknowledged the problem and expressed hope for a lasting solution through discussions between the government and traders.