Edible oil prices will not be hiked without proper scrutiny: minister

Commerce Minister Khandakar Abdul Muktadir has said edible oil prices will not be raised before the matter is properly examined.

He made the comment this morning after inaugurating riverbank protection work at Kanishail, on the right bank of the Surma River in Sadar upazila.

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The work is part of the Surma-Kushiyara River Basin Development and Flood and Integrated Water Resources Management Project.

"Although traders are demanding higher edible oil prices, the government will make its decision carefully," the minister said.

Asked whether the overall law and order situation could hinder investment, he said: "The government is keeping a close watch to ensure the country's current law and order situation does not affect local or foreign investment."

Traders in Dhaka and several other districts are struggling to obtain enough bottled soybean oil from refiners, raising concerns over tightening supply and its impact on consumers.

Refiners, meanwhile, have urged the government to raise prices again, while loose soybean and palm oil prices have increased in Dhaka over the past week.

Sellers said refiners are supplying less bottled oil, with suppliers telling them that companies want another price hike. The shortage, however, varies across markets.

On September 3, the government raised the maximum retail price of bottled soybean oil by Tk 5 to Tk 204 a litre, citing higher international prices and import costs.

Supply had already been low for nearly two months. It stabilised for some time after the adjustment but has since fallen again.

Trading Corporation of Bangladesh data for September 29 show that loose soybean oil rose 1.05 percent over the past week, from Tk 186-195 per litre to Tk 190-195 yesterday.

On the same day, loose palm oil rose 0.88 percent, from Tk 170-172 to Tk 170-175.