The country's [bangladesh] edible oil market has been destabilised for a long time now, causing immense sufferings to consumers, since there is no official regulation controlling prices of the essential commodity.

Although according to a decision taken by a meeting between Bangladesh Rifles (BDR) and Bangladesh Vegetable Oil Refiners’ and Vanaspati Manufacturers’ Association, prices of edible oil were supposed to be rescheduled every 15 days on an ad hoc basis until further notice, the measure has not been followed through since the first meeting.

In the meantime most retailers and wholesalers of edible oil, middlemen, and oil refiners are hiking up the prices according to their whims, while blaming the international market for it.

Oil traders of Moulvibazar wholesale market in the capital alleged that a section of unscrupulous refiners and middlemen operating between the refiners and wholesalers, popularly known as ‘DO traders’, are bagging crores of taka in the name of an international price hike of edible oil.

Oil traders said it takes at least 15 to 30 days for imported oil to reach the domestic market since its departure from the point of origin, and the most recent international price hike of edible oil happened last week.

But prices on the domestic market shot up immediately after the news of international price hike reached the wholesale oil markets of the capital and port city Chittagong, although the oil bought for hiked prices has yet to reach the country.

Although the middlemen between the refiners and the wholesalers are quick to raise oil prices as soon as they get news of an international price hike, they do not show similar agility when prices dip on the international market, alleged oil wholesalers of Moulvibazar adding that the middlemen often refuse to lower the prices of their oil stock or reduce the prices only negligibly, claiming that they had bought the stock for higher prices.

Although in the meeting between oil wholesalers and refiners on one side and BDR on the other on January 13 and 19 in the headquarters of the border security force, which is currently being used by the caretaker government as a price curbing force, it was decided that no person will be allowed to hoard edible oil for more than 15 days, the middlemen are however buying off large amounts of oil from the refiners without any oversight and hoarding them nonetheless, creating the current ‘artificial’ price hike on the domestic market, claimed the wholesalers.

A cartel of middlemen in collusion with some unscrupulous oil refiners are purchasing large quantities of oil from the latter with advance payment, alleged the wholesalers adding that the middlemen are not even stopping at that, as they are also purchasing extra demand orders (DOs) through their brokers to increase their hoarded stock of oil, creating an artificial crisis of oil supply.

There is no shortage of oil on the market if buyers are willing to pay hiked up prices, lamented the wholesalers. The country has enough reserve of edible oil to last it for about a month, they added saying there is no legitimate reason for the current price hike of edible oil in the country since the batch of imported oil bought for higher prices has yet to reach the market.

If legal actions are taken against the unscrupulous middlemen and refiners, prices of edible oil can be kept stable, they suggested.

[Souce:www.bangladeshnews.com.bd]