The ongoing tensions across the Middle East have begun to affect the prices of essential commodities in Bangladesh, with edible oil seeing a noticeable increase.
Within the past week, the price of loose edible oil has risen by Tk 10 per litre, while the price of loose palm oil has also increased.
Prices of edible oil had already been edging up ahead of Eid-ul-Fitr. However, the recent escalation of tensions involving Iran, Israel and the United States has created volatility in global markets, particularly in the fuel sector, which traders say is indirectly influencing local commodity prices.
Traders allege that transport owners have increased fares citing fuel supply concerns, which has subsequently pushed up the prices of edible oil in both wholesale and retail markets.
Retailers say they are being forced to sell at higher prices due to rising wholesale rates. Meanwhile, wholesale traders claim that supply from mill gates has declined, creating pressure on the market and influencing prices at the consumer level.
These observations were made during visits to several markets in the capital—including Ray Saheb Bazar, Koltabazar and Laxmibazar on Friday, where traders and consumers shared their experiences.
Loose soybean oil is commonly sold in both kilograms and litres in local markets. After market visits, it was found that loose soybean oil is currently being sold at Tk 195 to Tk 200 per litre, depending on the market. Just a week ago, the same oil was available at Tk 185 to Tk 190 per litre.
Similarly, loose palm oil is now being sold at Tk 165 to Tk 170 per litre, compared to Tk 155 to Tk 160 per litre last week.
Abdur Rahman, owner of Rahman Oil Traders, said prices had increased suddenly compared to the previous week. “We can no longer purchase oil at earlier rates, so we are compelled to sell it at higher prices,” he said.
Mohammad Sohel, a salesman at Bhai Bhai Edible Oil Store, said irregular supply has created pressure in the market. “Companies are supplying oil at higher prices, which is pushing up retail prices,” he added.
“Due to the ongoing war, imports are facing difficulties. Production is also being disrupted because of fuel shortages. Transportation costs have increased by around Tk 1,000 per truck, which is contributing to the price hike,” he explained.
Mizanur Rahman, proprietor of the importing firm MA Traders, said that although global edible oil prices have risen, domestic adjustments have not yet been formally made.
Consumers, however, have expressed strong dissatisfaction over the rising prices. Rahima Begum, a buyer, said managing household expenses is becoming increasingly difficult as the prices of daily necessities continue to rise.
Another consumer, Hasan Ali, said he did not expect oil prices to increase so sharply within a week. “Our income is not increasing, but our expenses keep rising,” he said.
It may be noted that the last official price adjustment by edible oil refining companies was made in December, when the price of loose soybean oil was set at Tk 176 per litre and palm oil at Tk 166 per litre. Currently, both loose soybean and palm oil are being sold in the market at Tk 20–25 higher than the declared rates.