The rise in fuel prices is creating fresh pressure on Bangladesh’s essential-goods market, with traders warning that higher transport costs could push up the prices of rice, eggs and other everyday commodities. Flour and refined flour have already become more expensive, while the prices of several other products have either risen or are showing signs of further increases.
The latest developments are adding to concerns over the cost of living at a time when inflation is already putting pressure on household budgets. Consumer rights advocates say lower-income families are particularly vulnerable because they have limited scope to absorb further increases in food and other basic expenses.
Although the additional transport cost for individual commodities may amount to only a few poisha per kilogram, consumers are often facing price increases measured in taka. Consumer groups have therefore called for stronger government monitoring to prevent businesses from using higher fuel and transport costs as a justification for disproportionate price increases.
Flour and refined flour rise by Tk 10 per kilogramme
A visit to markets in Nakhalpara, Mohakhali, Kolmilata and Karwan Bazar in Dhaka on Wednesday found that packeted flour was selling for Tk 70 per kilogramme and refined flour for Tk 80. About a week earlier, the prices had been Tk 60 and Tk 70 respectively.
Loose flour was selling for Tk 50–55 per kilogramme, while loose refined flour was priced at Tk 65–70. Both products had risen by around Tk 5 per kilogramme over the previous five to six days.
Bikash Banik, proprietor of KB Store at Mohakhali kitchen market, said flour and refined flour had already become more expensive about one to one and a half months earlier.
“The price has increased again. The new two-kilogramme packets supplied by companies carry retail prices of Tk 140 for flour and Tk 160 for refined flour. Our profit margin is small, so we sell them at the printed price,” he said.
Data from the state-run Trading Corporation of Bangladesh (TCB) show that the price of packeted flour increased by 4 per cent over one month, while refined flour rose by 17 per cent.
Rice market faces fresh price pressure
The rice market, which had remained relatively stable for around a month, is now facing renewed uncertainty following the increase in truck fares after the fuel price rise.
Mahiu(d)din, a sales representative of Ismail & Sons, a wholesale rice business at Karwan Bazar’s Kitchen Market, said he had brought 15 tonnes of rice from Chapainawabganj. Two days earlier, the truck fare had been Tk 17,000, but the latest consignment cost Tk 21,000.
The additional Tk 4,000 transport cost means the trader is now paying roughly 27 poisha more per kilogramme in freight.
“With vehicle fares going up, there is no way to avoid increasing the price of rice,” Mahiu(d)din said.
Asked how much the price could rise, Md Shahjahan, proprietor of Mukta Rice Agency, said the increase should theoretically be around 50 poisha per kilogramme. However, he suggested that the final retail increase could reach Tk 1.
Neither trader expected an immediate rise because shops still had rice purchased at the previous rates. They said the impact could become more visible once newly purchased stocks begin reaching consumers over the next few days.
Yasin Traders, which sources rice from Mohammadpur Krishi Market for sale in Mohakhali, has also reported higher transport costs. A sales representative said the fare for a small pickup had previously been around Tk 1,500 but had increased by another Tk 200.
The additional cost, he said, would eventually have to be reflected in the selling price. He also pointed out that higher diesel prices could raise the cost of rice milling, potentially adding further pressure to retail prices.
Consumer groups warn against excessive increases
The Consumers Association of Bangladesh (CAB) has expressed concern that traders could use higher fuel and transport costs to raise prices beyond what is justified.
CAB president AHM Shafiquzzaman said the increase in transport costs resulting from higher fuel prices might amount to around 15–25 poisha per kilogramme for some commodities. However, he warned that businesses could use the situation to impose much larger increases if the market was not properly monitored.
He said the increase in fuel prices was affecting transport, the wider economy and household expenses. Stronger market surveillance would therefore be necessary to prevent dishonest traders from placing an excessive burden on consumers.
Puffed rice also faces higher costs
The impact of higher transport fares is also being felt in the market for puffed rice and other traditional food products.
Monir Hossain, a wholesaler of flattened rice, puffed rice, khoi and molasses at Karwan Bazar, recently brought 3,200 kilogrammes of hand-roasted puffed rice from Barishal. He said the regular transport fare was Tk 16,000, but he had to pay an additional Tk 3,000 after negotiations.
Puffed rice is currently selling for Tk 120–150 per kilogramme depending on quality. According to Monir, the higher transport charge has increased his freight cost by roughly Tk 1 per kilogramme.
He said the additional cost would have to be included in the wholesale price and could potentially double by the time the product reached consumers through the retail market.
Edible oil supply remains uneven
The price of bottled edible oil increased by Tk 5 per litre at the beginning of the month. Despite that increase, supplies of the five-litre bottles, which are in particularly high demand, have not returned to normal, according to traders.
Bikash Banik of KB Store said oil dealers had indicated that companies had written to the government seeking another price increase. He also claimed that dealers were supplying smaller quantities amid the uncertainty over prices.
Egg prices remain high
Egg prices have also remained elevated for around two months, with traders now warning of another possible increase.
Saiful Islam, proprietor of Ma Departmental Store in West Nakhalpara, said wholesalers had told the person who supplies eggs to his shop that higher truck fares could push up prices further.
On Wednesday, brown farm eggs were being sold at Tk 160 per dozen. Customers buying four eggs were charged Tk 55.
Milk and imported fruit become more expensive
Packeted liquid milk from all companies has recently increased by Tk 10 per litre, according to traders.
Imported fruits have also become more expensive. Malta and oranges are selling for Tk 420–450 per kilogramme, while apples are priced at Tk 340–360. Red grapes are being sold for Tk 400–450 per kilogramme.
Traders have attributed the higher prices of these products to the increase in fuel costs and the resulting impact on transportation.
Experts call for data-based monitoring
Dr Khondaker Golam Moazzem, president of the private research organisation Knowledge Hub Institute, said higher fuel prices should not automatically translate into equivalent increases in commodity prices.
He said the Bangladesh Trade and Tariff Commission should quickly analyse the appropriate increase in transport fares per kilometre and assess how fuel costs affect the production and distribution expenses of different commodities.
For example, if bringing vegetables from rural areas to Dhaka costs an additional five or 10 poisha because of higher fuel prices, the relevant agencies under the agriculture, food and commerce ministries could use that information to monitor the market, he said.
According to Moazzem, having clear data on the actual impact of fuel prices would make it more difficult for businesses to impose unjustified increases.
Consumer authorities promise tighter oversight
Md Zahirul Islam, director general of the Directorate of National Consumer Rights Protection, said the impact of the diesel price increase on commodity prices appeared to be higher in some cases than would normally be justified by the rise in transport costs.
He said businesses would not be allowed to double commodity prices on the grounds that transport costs had increased by around 25 poisha per kilogramme.
“We will not allow businesses to use this as an opportunity to make excessive profits,” he said.
Zahirul Islam added that market monitoring was being conducted every day. Authorities were comparing increases in transport fares with changes in commodity prices and collecting information from different sources.
He said monitoring would be strengthened further to determine whether price increases were consistent with actual changes in transportation and other costs.
For consumers already struggling with higher living expenses, the coming days will therefore depend not only on transport costs but also on how effectively the authorities can prevent legitimate cost increases from becoming a justification for disproportionate rises in retail prices.
