A news report published online by Prothom Alo on Monday stated that traders are seeking to increase the price of soybean oil by Tk 14 per litre and palm oil by Tk 12. A decision is expected at a meeting scheduled for Tuesday at the Commerce Ministry. Meanwhile, other media outlets have reported that the price of edible oil has already been increased, effective from Sunday.
There is little difference in the essence of the two reports. On 27 March, the Association of Edible Oil Refineries wrote to the Bangladesh Trade and Tariff Commission, requesting a price hike of Tk 18 per litre for bottled soybean oil and Tk 13 for open soybean and palm oil. The exemption of duties and taxes on edible oil imports expired on 31 March, which traders are citing as the reason for the proposed price increase.
Commerce Adviser Sheikh Bashiruddin held meetings with refinery owners on 6 and 8 April to discuss the issue, but no decision was reached. A follow-up meeting is scheduled for today.
On 8 April, National Board of Revenue (NBR) Chairman Abdur Rahman Khan told Prothom Alo that the government had exempted edible oil imports from customs duties and taxes for six months, but that the NBR cannot sustain such concessions indefinitely.
Following this, the Vegetable Oil Refiners and Banaspati Manufacturers Association submitted a letter to the Tariff Commission on Sunday proposing new prices. According to their statement, the price of one litre of bottled soybean oil has increased from Tk 175 to Tk 189. The new price for a five-litre bottle is Tk 922, up from Tk 852. The price of one litre of open soybean and palm oil has risen from Tk 157 to Tk 169.
This comes at a time when global edible oil prices are stable, with soybean oil prices even showing a slight decline in March. The removal of tax exemptions is being blamed for the proposed price hike in the domestic market. Meanwhile, the NBR argues it cannot continue providing indefinite tax breaks. The result is predictable: increased import taxes will be passed directly on to consumers.
It’s important to note that just before Ramadan, traders increased the price of open soybean oil by Tk 16–17 per litre, citing supply issues. Bottled oil was also not available at the fixed rate.
Essential food items like edible oil, sugar, rice, lentils, and flour should not be treated as revenue tools. If the government needs to boost revenue, it should do so by collecting more income tax from the wealthy. Many have also recommended increasing the income tax threshold. Instead of exploring these options, the NBR has taken the easier route of raising import taxes.
Bangladesh’s tax system relies too heavily on import duties. This approach needs a fundamental shift. Greater emphasis should be placed on direct taxes—especially income tax. The interim government must reassess its customs and tax policy. Products that directly impact poor consumers should remain duty-free, especially when inflation is still high, wage growth is sluggish, and job creation remains insufficient. Incomes are not rising in line with the cost of living.
We fully agree with the Commerce Ministry official quoted in the Prothom Alo report who said it was inappropriate to announce a price increase before an official decision. Premature announcements not only disrupt the market but may also trigger artificial crises.
We hope that no decision is taken in today’s meeting that places an additional burden on consumers. The NBR and the government must put consumer interests first.