Edible Oil Prices Set to Rise Following Global Market Surge

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The government has decided to increase the prices of edible oils, aligning local rates with the recent surge in international markets, officials confirmed on Monday.

The decision came after a meeting between Commerce Adviser Sk Bashir Uddin and representatives of edible oil traders at the Secretariat. Traders are expected to announce the revised prices for both loose and bottled soybean and palm oil shortly.

Industry representatives have been urging the government to adjust prices, citing an 18–20% rise in global soybean and palm oil rates. According to the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association, international soybean oil prices have now reached $1,200 per ton. Palm oil has also surged significantly in global markets.

The price hike follows recent government interventions to stabilise the market. On August 12, palm oil prices were cut by Tk19 per litre, bringing the rate down to Tk150, while soybean oil remained steady at Tk189 per litre. Earlier, in April, the government had fixed soybean oil at Tk189 per litre and palm oil at Tk169 per litre.

Traders noted that the global supply-demand imbalance, driven by reduced production in key exporting countries and rising international demand, has placed significant pressure on domestic edible oil prices. “Without aligning with global rates, the domestic market cannot sustain long-term supply, and traders face losses,” said a senior industry official.

Economists warned that the price increase could have a ripple effect on other essential goods, as edible oils are a staple in household consumption and food processing industries. Consumers are advised to anticipate slightly higher costs for cooking oils in the coming weeks.

The government has assured monitoring to prevent excessive profiteering while allowing adjustments that reflect the international price movement. Officials also emphasised the importance of maintaining a stable supply chain to ensure adequate availability across the country.

As global commodity prices remain volatile, authorities are expected to continue reviewing edible oil prices periodically to balance the interests of producers, traders, and consumers alike.