Edible Oil Prices Surge Across South Asia Amid Global Market Uncertainty

CMB News | Vegetable Oils | March 10, 2026

Edible oil markets across South Asia are experiencing renewed price pressure as geopolitical tensions in the Middle East and global supply uncertainties ripple through international commodity markets. Retail prices for soybean oil, palm oil, and sunflower oil have risen in several countries including Bangladesh, Nepal, and India, while governments and industry groups in some regions insist that supply remains stable.

Although the increases appear modest in global currency terms, edible oil is a core food commodity across the region, meaning that even small price increases can significantly impact household budgets and food inflation.

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Bangladesh: Retail Prices Rise Despite Adequate Stock Claims

In Bangladesh, prices for loose soybean oil and palm oil have increased in recent days despite government assurances that stocks remain sufficient.

Retail traders report that prices have risen by Tk 5–7 per litre within the past three to four days. At the same time, bottled soybean oil has become difficult to obtain in some markets due to limited supply from refiners.

A retailer at Kawran Bazar in Dhaka said that he has been receiving only 100 litres of oil against a demand of 200 litres during the past week.

Bangladesh Retail Prices

Product	Local Price	USD	EUR
Soybean oil (loose)	Tk 200–202 / kg	$1.82–1.84	€1.67–1.69
Palm oil (loose)	Tk 172 / kg	$1.56	€1.44

Wholesale prices have also increased in the country’s key trading hub of Chattogram.

Bangladesh Wholesale Prices (per mound – 37.32 kg)

Product	Local Price	USD	EUR
Soybean oil	Tk 7,170	$65.18	€60.00
Palm oil	Tk 6,060	$55.09	€50.70

Traders attribute the price increase partly to uncertainty in global markets triggered by the ongoing Iran conflict.

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Bottled Oil Becomes Scarce in Regional Markets

In several Bangladeshi regions, bottled soybean oil has become increasingly difficult to find.

Bottled Soybean Oil Prices (Khulna)

Product	Previous Price	Current Price	USD	EUR
5-litre bottle	Tk 990	Tk 1,060	$9.64	€8.83
1-litre bottle	Tk 183	Tk 195	$1.77	€1.62

Retailers say deliveries from refiners have declined in recent weeks. However, large edible oil processors such as Meghna Group and City Group insist that supply remains stable and sufficient.

According to industry representatives, logistical problems – particularly shortages of diesel for transport vehicles – may be affecting supply to regional markets outside Dhaka.

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Nepal: Sharp Increase in Sunflower Oil Prices

Nepal is also facing significant increases in edible oil prices, mainly due to rising international raw material costs and supply chain disruptions.

According to the Nepal Retailers Association, wholesale prices for sunflower oil have exceeded Rs 2,700 per crate, while retail prices have climbed to around Rs 300 per litre.

Nepal Retail Oil Prices

Product	Local Price	USD	EUR
Sunflower oil	Rs 300 / litre	$2.25	€2.07
Dhara mustard oil	Rs 3,450 / crate	$25.94	€23.84

Traders say the price surge is linked to global commodity volatility, geopolitical tensions in the Middle East, and increased exports to neighbouring India.

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India: Retailers Expect Further Price Increases

Parts of India have also begun experiencing price increases in cooking oil.

Consumers report retail price increases of Rs 8–10 per litre in recent days.

Example Retail Price Change

Product	Previous Price	Current Price	USD	EUR
Ruchi Gold oil (750 ml)	Rs 108	Rs 120	$1.45	€1.33

Retailers warn that prices could climb to Rs 140–150 in the coming weeks if global supply conditions remain tight.

Some wholesalers have reportedly begun stockpiling supplies to avoid potential shortages, recalling similar market behaviour during the Russia-Ukraine conflict.

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Pakistan: Industry Assures Market Stability

In contrast to neighbouring countries, Pakistan’s edible oil industry maintains that the domestic supply situation remains stable.

The Pakistan Vanaspati Manufacturers Association (PVMA) stated that the country currently holds sufficient reserves of ghee and edible oil to cover at least two months of domestic consumption.

Pakistan Supply Situation

Indicator	Status
Domestic reserves	Sufficient
Import shipments	Ongoing
Market outlook	Stable

Industry representatives emphasize that several import consignments are already in transit and that manufacturers maintain adequate inventories of both raw materials and finished products.

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Global Market Drivers

The edible oil market is highly sensitive to global developments because major vegetable oils – including palm oil, soybean oil, and sunflower oil – are traded internationally.

Current market pressures are largely driven by:

• geopolitical tensions linked to the Iran conflict
• higher transport and energy costs
• logistical disruptions in shipping routes
• speculative buying and stockpiling by traders

Even small price fluctuations in global vegetable oil markets can quickly translate into retail price increases in import-dependent regions such as South Asia.

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Outlook

Despite official assurances that stocks remain sufficient, edible oil markets across South Asia are likely to remain volatile in the coming weeks.

For millions of households in the region, cooking oil is a daily necessity. As a result, even modest price increases can have an immediate impact on consumer spending and food inflation.

If geopolitical tensions continue to influence energy markets and global commodity supply chains, edible oil prices may remain under pressure in the near term.