Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association today hiked the price of bottled soybean oil by Tk12 per litre to Tk199.

The new price will come to effect from Thursday (4 May), the association said in a press release. 

"Since the government-provided VAT exemption period for the import of edible oil ended on 30 April, the Bangladesh Vegetable Oil Refiners and Banspati Manufacturers Association decided to increase the price of edible oil in consultation with the Ministry of Commerce and the Bangladesh Tariff Commission," the press release added.

The association wanted to increase the price of bottled soybean oil by Tk15 per litre citing additional VAT on product redemption.

Earlier, the price of per litre of bottled soybean oil was Tk187

Meanwhile, the price of open soybean oil has been fixed at Tk176 and the price of palm oil has been fixed at Tk135 per litre.

The price of five-litre bottles of soybean oil has been fixed at Tk960.

On 17 November last year, soybean oil price was increased in the domestic market.

Import of edible oil is generally subject to VAT at the rate of 15%

In the context of the Russia-Ukraine war, the price of edible oil increased in the world market. Therefore, in March last year, the amount of VAT was reduced to 5% to keep the price of edible oil affordable in the country's market.

This facility was first given for three months but later it was extended several times. In order to keep the price of edible oil at a bearable level during Ramadan, the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association demanded to extend the period of the facility till Eid. In view of their demands, the reduced VAT-facility period was extended till 30 April.

Due to the expiration of this period, theBangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association appealed to Commerce Secretary Tapan Kanti Ghosh for an adjustment of the price of soybean oil and palm oil.