Edible oil prices in the country are rising at an unusual rate, triggered by the Middle East conflict. Within a month, the wholesale price of palm oil has increased by BDT 18 per litre. This upward trend in super palm oil and soybean oil prices is destabilising the overall commodity market. Data shows that since the war began, crude palm oil prices in the global market have risen only slightly. But factors such as increased shipping charges and fears of a supply crisis if the war lingers have driven domestic prices up. In Khatunganj, the latest wholesale price of palm oil reached BDT 6,550 per maund (37.32 kg), up from BDT 5,850 in the last week of February.
The market for super palm oil is also on the rise. Typically, super palm oil, a more refined version of palm oil, costs BDT 200 more per maund. Currently, super palm oil, the second most in-demand edible oil, is trading at BDT 6,750 per maund. Meanwhile, refined loose soybean oil is being traded at BDT 7,500. Although the price hike for soybean oil has not increased much, it is also trending upward alongside palm and super palm oil. In one month, the price of refined loose soybean oil has increased by BDT 500 per maund.
On Sunday, palm oil was traded at BDT 6,550 per maund in Chattogram’s Khatunganj and Dhaka’s Moulvibazar. Just a few days ago, the price ranged between BDT 6,200 and BDT 6,250. The market has surged primarily due to the fuel crisis stemming from the regional conflict involving Iran, the US, and Israel. General wholesalers allege that brokers and trading firms are destabilising the market through the buying and selling of supply orders (SOs), anticipating further price hikes.
Golam Mawla, president of the Bangladesh Wholesale Edible Oil Traders Association, told Bonik Barta, “The edible oil market in Bangladesh primarily depends on importers, refinery owners, and major trading houses. When the market becomes highly unstable, the Ministry of Commerce usually tries to adjust or reset prices. However, while a meeting was held during the end days of the interim government, no initiative has been taken since. Consequently, the prices set by mill owners with government consent remain in effect on paper. Due to the government's lack of attention on this issue, the wholesale market is fluctuating at the whim of mill owners.”
Market insiders noted that the commerce ministry is expected to adjust edible oil prices at least once a month based on global market fluctuations and recommendations from the Tariff Commission. Since edible oil is a highly sensitive commodity that influences the broader market, the government typically prefers price stability. Usually, refineries do not push for adjustments when they are profitable, but they frequently send letters for hikes when facing losses. While they are restricted from raising bottled soybean prices due to fixed retail labelling, companies often ignore government-set rates for loose oil during global price surges. As a result, consumers are forced to pay higher prices.
Traders in Khatunganj acknowledged that while booking costs have risen due to the war, the domestic market for palm oil and other edible oils has seen an abnormal spike over the past month. Prices for palm oil, soybean, and super palm oil have surged by as much as BDT 18–19 per litre. This has led to market instability through the repeated trading of previously purchased Supply Orders (SOs). Without an official price revision and alignment with importers' costs, prices are expected to continue their upward trajectory.
SM Nazer Hossain, central vice chairman of the Consumers Association of Bangladesh (CAB), told Bonik Barta, “We observed that the previous government was indifferent toward market monitoring during Ramadan ahead of the 13th parliamentary elections. Even after the transition to an elected government, a segment of traders is attempting to destabilise the market by capitalising on the war. Although global prices have seen some increases, the price of loose edible oil is being hiked daily under the pretext of conflict. Furthermore, companies are creating an artificial supply crunch by reducing the supply of bottled soybean oil.” He warned that the broader commodity market would become unstable unless the Ministry of Commerce takes immediate action regarding edible oil.
According to the World Bank’s Commodity Pink Sheet, crude palm oil prices have risen by approximately $100 over a few months. The price per ton was $1,005 in January, $1,039 in February, and reached $1,103 in March. Soybean oil saw an even more significant surge, rising from $1,154 per ton in January to $1,282 in February and hitting $1,482 in March — a jump of $328 in just two months.
Mill owners said that in addition to rising global prices, shipping charges have surged significantly, driving up the cost of all imported edible oils. They claimed to be incurring losses on bottled soybean oil because the government has not adjusted the retail price, forcing several institutions to reduce their supply. While loose oil remains available, they argued that prices in the trading market have naturally increased in line with global trends.