Refiners Seek Another Edible Oil Price Hike Ahead of Ramadan

The edible oil market in Bangladesh is facing another potential supply risk ahead of Ramadan as local refiners have requested a fresh price hike.

According to a proposal submitted by the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association on September 20, the current international prices of soybean oil are higher than when the last domestic price adjustment was made on September 2.

The refiners claim that they are incurring a loss of around Tk 17 per litre for soybean oil at the current international prices, which stand at $1,325 per tonne. They have continued supplying the essential product and opening letters of credit (LCs) for imports based on the government's assurance that domestic prices would be adjusted in line with international market conditions.

The commerce ministry official expressed concern that continued losses could eventually discourage imports, potentially putting pressure on the domestic supply of essential cooking oil. The refiners' association warned of a possible supply shortage in the coming months, particularly ahead of the next Ramadan, when demand for edible oil traditionally rises significantly.