A tripartite meeting convened by the Ministry of Commerce is underway to finalize a decision on raising edible oil prices, following a proposal from refiners amid the expiry of tax exemptions.
The Ministry of Commerce has begun a crucial tripartite meeting on Tuesday to determine whether edible oil prices should be increased. The discussion includes representatives from the Bangladesh Trade and Tariff Commission, National Board of Revenue (NBR), and edible oil refiners.
Senior Assistant Secretary Fazle Wahid confirmed the meeting is being held at the ministry’s conference room, marking the second round of talks prompted by a proposal from the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association.
The association has suggested raising the price of bottled soybean oil by Tk 18 per liter and unpackaged soybean and palm oil by Tk 13, citing the expiration of import tax waivers on March 31. The proposed hike, initially set for implementation on April 1, was delayed due to the long Eid holidays.
Consumer rights group CAB (Consumers Association of Bangladesh) has strongly opposed the proposal, calling it unjustified and against consumer interests. CAB Vice President S M Nazer Hossain argued that global oil prices are declining, and any increase would exploit consumers.
He further accused traders of misusing past tax relief to charge excessive prices and emphasized that any attempt to raise prices now lacks legitimacy.
Sources inside the ministry indicate the NBR is hesitant to extend the tax exemption, despite earlier recommendations by the Tariff Commission to prolong it until June 30.
The final decision hinges on the outcome of Tuesday’s discussion, which is being chaired by Commerce Advisor Sheikh Bashiruddin. If the government refuses to extend the duty benefits, the ministry may be forced to approve the price hike under pressure from refiners.
This is not the first time such issues have emerged. In December last year, the government raised soybean oil prices by Tk 8 per liter following supply shortages in October and November. Before Ramadan, the government had reintroduced duty exemptions to stabilize the market.
Liberty News’ economic correspondent states that at that time, bottled soybean oil was priced at Tk 175 per liter, while unpackaged oil stood at Tk 157. Now, refiners are proposing to raise the bottled oil price to Tk 193, a move critics say would further burden consumers already dealing with inflation.
LND/BG
