International edible oil prices are now about 25 to 29 percent above the July–September average in 2025. Government policy calls for edible oil prices to be reviewed and revised monthly, but that has not happened in practice.

Mill owners and importers have repeatedly sought higher domestic prices, citing higher international prices. Weighing the impact on consumers, the government most recently agreed on September 2 to raise prices by BDT 5 a litre, while assuring traders that prices would be adjusted again soon.

Market insiders say the government’s preference for gradual increases rather than a single large adjustment has prompted many companies to limit supply while waiting for the next rise. Shortages of one- and two-litre bottled soybean oil have followed, creating instability in the market. Demand has shifted towards loose soybean oil and palm oil, pushing up their prices.

About 90 percent of Bangladesh’s edible oil demand is met from the international market. According to the World Bank’s Commodity Pink Sheet, the average international price was $1,154 a tonne in April–June 2025, rising to $1,237 in July–September. It climbed further in 2026 and reached $1,740 a tonne in June, about 41 percent above the July–September average last year.

Prices have since eased but remain well above last year’s levels, at $1,658 a tonne in July, $1,638 in August and $1,550 to $1,600 in September this year.

Domestic prices, by contrast, have been raised twice in 2026 without being adjusted in line with international prices.

In the first round, on April 29, bottled soybean oil price rose by BDT 4, from BDT 195 to BDT 199 a litre. The price of the five-litre bottle rose from BDT 955 to BDT 975, while loose soybean oil rose to BDT 180 a litre, up BDT 4.

Following a commerce ministry review, prices rose again on September 2, with bottled soybean oil increasing by BDT 5 to BDT 204 a litre, the five-litre bottle by BDT 25 to BDT 1,000 and loose soybean oil by BDT 5 to BDT 185 a litre.

A handful of importers and packaging firms operate in Bangladesh’s edible oil market. Government policy calls for prices to be reviewed every month and revised as needed, but in practice this does not happen regularly. Traders submit proposals for increases, while the government, wary of adding to the burden on consumers, generally favours smaller adjustments.

Mill owners and importers say the government has approved less than a third of the increases they have proposed on each occasion. The commerce ministry asks them to settle for rises below what they regard as justified, taking into account domestic market conditions, the risk of commodity price instability and consumer interests during Ramadan and other periods of strain.

Traders also complain that assurances of a further adjustment soon have gone unfulfilled.

According to the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association, international edible oil prices surged after the country had adjusted prices on December 8, 2025.

In February 2026, imported soybean oil cost BDT 211 a litre, yet no adjustment was made at the government’s request to avoid adding to the burden on consumers during Ramadan. Importers say that after lengthy discussions, prices were raised by just BDT 4 a litre on April 29 and that assurances of another adjustment soon afterwards were not honoured.

Over the subsequent three months, soybean oil cost reached BDT 217 a litre while the selling price remained at BDT 199. Traders say that left them with a loss of about BDT 18 a litre.

At a meeting with the commerce ministry on September 2, the government proposed an increase of BDT 5 a litre, citing the overall economic situation and consumer interests. Traders objected, arguing that such a small adjustment would leave importers facing large losses and make it difficult to maintain normal supply. The government then assured them of a further adjustment soon, and importers agreed to the increase. The new prices took effect on September 3.

Supplies of bottled soybean oil have not increased as expected since the new prices took effect. Market insiders say the commerce ministry’s preference for staged increases has led many companies to limit supply while waiting for the next adjustment. Marketing representatives of the leading companies are no longer visiting markets regularly, leaving retailers unable to buy edible oil as needed.

Both wholesale and retail markets have been affected. One- and two-litre bottles have become particularly hard to find, although five-litre bottled oil remains relatively available. In some places, bottled soybean oil is being sold above the price printed on the packet, while demand for loose soybean oil and palm oil has risen.

The director general of the Directorate of National Consumers’ Rights Protection, Md Jahirul Islam, acknowledged the problem.

“We are contacting the importer companies concerned about supply being cut after the price rise,” he told Banik Barta. “There’s also a meeting this week at the commerce ministry with traders on the consumer-goods market as a whole. I hope a lasting solution can be found through discussions between the government and the traders.”

In the wholesale market, a maund (37.32 kg) of soybean oil is now trading at BDT 7,500, up from BDT 7,200 a month and a half ago. Palm oil has risen by BDT 300 a maund over the same period to BDT 6,600, while super palm oil is trading at BDT 6,800.

Retail prices stand at BDT 208–210 a kilogram for loose soybean oil, BDT 175–180 for palm oil and BDT 190–195 for super palm oil.

Market insiders say the government’s efforts to hold edible oil prices down and keep the market stable are having the opposite effect on supply. Because companies have cut back, consumers end up paying more than the printed price, they say. Loose edible oil has a fixed price, but because there is no packaging to check it against, overcharging is relatively hard to detect.

Traders say that while delaying price adjustments is intended to spare consumers immediate pressure, consumers ultimately pay more in the market.

Mahmudul Hasan, deputy chief of the trade policy division at the Bangladesh Trade and Tariff Commission, told Bonik Barta that setting edible oil prices was not the commission’s remit. “Almost every month the commerce ministry asks us to review data on the international market alongside information from the importing companies and determine a reasonable price,” he added. “We submit a report to the ministry as instructed.”

Meghna Group of Industries Chairman Mostafa Kamal said demand for edible oil would continue to rise from next month and that it was important to understand how normal supply was relative to that demand. “If the government fixes the price and the calculation against the international market points to a loss, why would importers bring in the goods?”

Kamal also claimed that such a policy, in a market as important as that for everyday essentials, had left the list of edible oil importers much shorter.

Traders at Khatunganj, Bangladesh’s largest wholesale market for consumer goods, say wholesale soybean and palm oil prices have risen by more than BDT 6 a kilogram in the weeks since the government raised edible oil prices. They argue that with international prices climbing and no regular adjustment at home, the impact is being felt most in the loose-oil market. The government raised prices by BDT 5 a litre, yet loose soybean and palm oil have risen by BDT 6–7 a litre over the past month and a half.

Commerce Secretary Md Ataur Rahman Khan rejected complaints of delay or bureaucratic foot-dragging at the ministry over price adjustments. “The allegation that there are delays is not correct,” he told Bonik Barta.

In adjusting the prices of edible oil and other essentials, Khan said, the government weigh the interests of both traders and consumers, with the impact of any increase on low-income people particularly important to take into account.

The commerce secretary added that decisions are taken only after analysing the international market, import prices, conditions in the local market and stock levels.