Soybean Oil Prices to Increase by Tk 18 Per Liter

Economic Desk

Dhaka, March 28, 2025: Businesses have proposed increasing the price of bottled soybean oil by Tk 18 per liter and loose soybean oil by Tk 13 per liter as the waiver on import duties for edible oil is set to expire on March 31.

The Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association submitted the proposal on March 27 to the chairman of the Bangladesh Trade and Tariff Commission.

Currently, the waiver includes exemptions on value-added tax (VAT) at the import stage and a 5% VAT at the local market. However, from April 1, a 15% VAT will apply to edible oil, which businesses argue will significantly raise costs.

According to the proposed prices, the retail cost of bottled soybean oil will rise from Tk 175 per liter to Tk 193. The price of loose soybean and palm oil will increase from Tk 157 to Tk 170 per liter.

The government had previously waived duties to keep prices stable during Ramadan, but this concession is set to end on March 31, with no announcements yet about an extension.

Oil traders have clarified that if the VAT exemption is extended, prices will remain unchanged. However, if the waiver ends, higher import costs will make price increases inevitable.

The last price hike for bottled soybean oil occurred on December 9, 2024, when the price was raised to Tk 175 per liter. Under the new proposal, a 5-liter bottle will cost Tk 935.