Khairul alam: Soybean oil prices in the international market have hit their lowest level in three years, yet in the domestic market, the same oil is being sold at relatively higher prices.

Business stakeholders claim that due to the depreciation of the taka against the dollar and delays in receiving timely bank support, consumers in the country are not benefiting from the global price drop.

However, the Consumers Association of Bangladesh (CAB) argues that these are mere excuses by businesses.

After reviewing import costs and other expenses, CAB states that after the latest price hike of 14 taka per bottled soybean oil, businesses are making a profit of at least 12 taka per liter.

The country’s average daily demand for edible oil is 5,000 tons, which amounts to 150,000 tons per month.

According to the World Bank’s regular monthly report (Pink Sheet), the prices of soybean oil, palm oil, and soybean seeds have been declining in the global market since 2022.

In 2022, the average price of soybean oil per ton in the international market was $1,667. By 2023, it dropped to $1,119, and in 2024, it further decreased to $1,022.

In the first three months of this year, soybean oil prices remained close to this level, averaging $1,040 from January to March. Prices have continued to decline in April.

A similar trend is observed in palm oil. In 2022, the global average price of palm oil was $1,276, which dropped to $886 in 2023 and slightly increased to $963 in 2024. In the first three months of this year, the average price was $1,068, but it has started to decline again in April.

Soybean seed prices have seen the sharpest decline. In 2022, the average price was $675 per ton, which fell to $598 in 2023 and further dropped to $462 in 2024. In the first three months of this year, the average price was $408. Soybean seeds yield up to 40% edible oil when processed.

A review of customs valuation data shows that over the past six months, the average assessed price of crude edible oil imported through Chattogram Port was 136 taka per kg at Chattogram Customs House.

Transportation and refining costs add up to a maximum of 15%, or 20 taka per kg. Including duties, taxes, and VAT (21 taka), the total cost comes to 177 taka per liter.

Following demands from businesses, the government increased the price by 14 taka per liter, setting the new price of soybean oil at 189 taka. Based on this calculation, businesses are making a profit of at least 12 taka per liter.