Refiners have increased the retail prices of soybean and palm oil by TK 6 and TK 13 per litre, respectively, effective from Tuesday. The price of bottled soybean oil has been set at TK 195 per litre, up 3 percent from TK 189 per litre. They will sell bottled palm oil, the most consumed edible oil in Bangladesh, at TK 163 per litre, which is 8.66percent higher than the previously fixed TK 150, according to a press release issued by the Bangladesh vegetable oil Refiners and Vanaspati Manufacturers Association.
The price of a 5-litre bottle of soybean oil has been hiked by TK 25 or 2.71 percent, to TK 945, said the association, adding that the new rates have been fixed in consultation with the commerce ministry, in line with the international prices. But the ministry of commerce said that so far the government has not granted any permission to the refiners to increase the prices. A meeting was held at the ministry of commerce with edible oil refiners on Monday where new prices for soybean and palm oil were discussed, but the ministry has not yet approved the price hike. A senior official of a leading edible oil importer and processor, requesting anonymity, however, claimed that the announcement regarding the price hike was made on basis of approval from the ministry.
The latest hike comes at a time when the prices of loose soybean and palm oil were already seeing an upward trend at the retail level. The ministry of commerce said the government has not yet granted the permission to increase edible oil prices. But the traders suddenly announced a price hike, which is completely illegal.
Any price increase for essential products must comply with procedures outlined in Essential Commodities Act or Distribution Act of 2011, including proper official notification. But these procedures have been overlooked totally and the refiners have arbitrarily fixed the prices. This arbitrary price hikes by now have led to significant problems. The consumers come up with the grudge that if the increase is warranted due to rising international prices, the government should implement measures to protect consumers. The last edible oil price hike was on April 13. Consumers are surprised that within the span of only five months prices have again hiked.
That the authorities have no control over market is amply proved when price hike is unbridled and outrageous. Traders always have a cartel which the authorities concerned fail to break it. The government’s exhortation to traders for bringing down prices falls on deaf ears. Morality is of no use to tame the syndicate. What is needed is a draconian control over the market and a crackdown on cartel.
The government should take stern steps to protect the consumers from paying higher prices for edible oil. Any compromise on price hike with any quarters doing positive harm to the interests of consumers is not acceptable to reason.
