Oil syndicates active targeting Ramadan

Multiple syndicate circles are destabilizing the oil market ahead of the month of Ramadan. The circle is creating an artificial crisis by reducing the supply of soybean oil (bottled) in the market. Market analysts say that every year this circle becomes active to increase the prices of daily commodities around the month of Ramadan. But unfortunately, marketers claim that this syndicate makes the market volatile getting blessings from the influentials linked with the government.

On Monday (December 9), the government increased the price of soybean oil by Tk8 per liter amid this oil crisis. Even after the price rise, the market witnessed a shortage of soybean oil (bottled). Soybean oil is not available as per the demand.

Among these, four ships carrying 52,000 tonnes of crude soybean oil arrived at the Chittagong port in a span of four days. All four ships started their journey to Chittagong from Brazil and Argentina a month ago.

Traders said the ensuing temporary crisis of bottled soybean oil will dissipate soon. The import of soybean oil will increase more before Ramadan as the price has been adjusted.

Shipping company sources said that City Group, Meghna Group of Industries (MGI) and TK Group have imported soybean oil in these four ships. Of these, TK Group imported 25,000 tonnes, City Group 20,000 tonnes, and Meghna Group 7,000 tonnes of soybean oil.

Chattogram Port Secretary Omar Farooq said that two ships - Ardmore Cheyenne and MT Dumbledore arrived with 21,500 tonnes of oil at the port on Saturday. Besides, another two tankers - MT Sunny Victory and MT Ginga Thresher reached the port’s maritime area with 30,600 tonnes of oil on Tuesday (December 10). In the meantime, the oil has been unloaded from the Ardmore Cheyenne which ship left the port on Monday. Among the ships, Sunny Victory came from Brazil, and the remaining three were from Argentina.

Meanwhile, there are allegations that this oil import is mainly to manipulate the soybean oil market during Ramadan.

Several retail traders from Khatunganj seeking anonymity told the media that a section of unscrupulous traders formed a syndicate ahead of Ramadan. This time too, they have made the oil market unstable through manipulation before Ramadan. As the consumers have no other choices, they must buy the oil at a higher price during Ramadan.

A retail trader named Sohel Hossain from Kawran Bazar in the capital said that the market is experiencing a soybean oil crisis. The traders are getting only one-fourth of their demanded supplies. Along with that, there are conditions; and if the conditions are not met, the oil is not supplied.

However, denying this allegation, TK Group Director Shafiul Athar told several media outlets that the government had assured that the soybean oil price would be adjusted and that the import would increase due to the price adjustment. There will be no shortage of soybean oil during Ramadan.

Meanwhile, according to the new price, bottled soybean oil will now be sold at Tk175 per liter, which was Tk167 until now. The price of loose soybean oil per liter will increase from Tk149 to Tk157. Due to the price revision, the prices of imported crude soybean oil have also increased. Recently imported oil prices will go up to Tk996 crore from the previous Tk950 crore.