As Eid shopping picks up in Dhaka, local retailers are sourcing soybean oil in small quantities from other wholesalers or shops – a shift from traditional company-supplied bottles – to retain customers amid a growing supply shortage.
At Osman Store in Hajipara Boubazar, owner Tajul Islam explained that his shop no longer receives regular supplies from companies. “If we don’t have oil, our customers will go elsewhere. I buy small lots from Chawkbazar at my own transport cost and sell them to our regulars,” he said, expressing frustration at the disrupted supply chain.
The shortage is not limited to Hajipara. Across the capital, bottled soybean oil has been scarce for nearly a month, with many stores reporting empty shelves. While the official retail price has not increased, bottles are now selling Tk 5 to Tk 20 above the listed price, as suppliers adjust to higher costs.
Rising prices and panic buying
The scarcity has pushed up the cost of raw soybean and palm oil. Retailers attribute the shortage to two key factors: reduced supply from oil companies and panic buying triggered by geopolitical tensions in the Middle East.
At Farid Store, two litres of soybean oil were being sold for Tk 400, slightly above the retail bottle price of Tk 390. Retailers report that wholesale prices have risen sharply, forcing them to sell at higher rates, sometimes Tk 5 to Tk 10 per litre above standard prices.
Most stores in Hajipara and Malibagh maintain limited stocks of 5-litre bottles, while 1- and 2-litre bottles are found in only a few shops. Fazlu Mia, owner of Comilla General Store in Malibagh, said: “Two or three days ago, oil was available in moderate quantities from dealers. Now, it’s almost impossible to get bottled soybean oil. We’re sourcing small lots from traders who had bought and stockpiled earlier.”
Big traders, who maintain regular business with suppliers, continue to receive allocations, while smaller retailers are struggling to get even 1-2 cartons, down from their usual 8-10 cartons.
Price history and profit squeeze
The last official price hike was on December 7, 2025, when the retail price of a one-litre bottle rose by Tk 6 to Tk 195, and a five-litre bottle to Tk 955. Since then, companies have not adjusted prices. However, rising dealer-level costs have forced many retailers to pass on the higher costs to consumers, squeezing profits.
Edible oil companies, meanwhile, deny any supply crisis. An anonymous source told Jago News that production and storage are normal and that overbuying by consumers and stockpiling by retailers and wholesalers are driving the apparent shortage.
Adaptation and survival
For shopkeepers like Tajul Islam, sourcing oil in small lots has become a pragmatic solution to meet demand and retain regular customers while navigating an unpredictable market. “We’re doing everything we can to keep prices reasonable,” he said.
With Eid just around the corner, Dhaka’s edible oil market is a test of resilience, reflecting the complex interplay of supply chain disruptions, geopolitical uncertainty, and consumer behaviour that is shaping everyday business in the city.