A rise in fuel prices has begun to feed through into Dhaka’s retail markets, with the cost of several vegetables and fish increasing within days as higher transport expenses add pressure across the supply chain.
Prices of some vegetables have risen by Tk5 to Tk20 a kilogram, while several varieties of fish have become Tk20 to Tk50 more expensive. At the same time, supplies of one- and two-litre bottles of soybean oil have tightened in some markets, adding another layer of pressure to household budgets already strained by elevated food prices.
The situation was observed on Friday, 25 September, during visits to Karwan Bazar, Mohammadpur and New Market, where shoppers and traders described a market increasingly shaped by higher transportation and distribution costs.
The latest pressure follows the Government’s decision to increase fuel prices earlier in the week. Diesel rose from Tk115 to Tk135 a litre, while petrol was set at Tk160 and octane at Tk165. Traders say the higher cost of fuel has pushed up the expense of transporting goods from production areas to wholesale markets and then to retail outlets.
Vegetable and fish prices climb
The effect has been particularly visible in fresh produce and fish, which depend heavily on transportation from different parts of the country.
Retail prices now vary according to quality and size. Brinjal is selling for Tk80 to Tk100 a kilogram, while local cucumber costs Tk70 to Tk80. Bitter gourd is around Tk80, local carrots Tk120, snake gourd Tk70 and yardlong beans Tk80 to Tk100. Okra is selling for Tk70 to Tk80, sweet pumpkin for around Tk40 and green papaya for Tk30.
Pointed gourd is priced at about Tk70 a kilogram, while tomatoes range from Tk120 to Tk150. Kakrol costs Tk70 to Tk80 and ridge gourd around Tk80. Depending on size, individual ash gourds and bottle gourds are being sold for Tk60 to Tk80.
Fish prices have also moved upwards. Farmed rohu is selling for Tk450 to Tk500 a kilogram, while pangas costs Tk250 to Tk270 and tilapia Tk250 to Tk300. Medium-sized koi is available for around Tk200 to Tk250.
Local shing costs Tk500 to Tk600 a kilogram and large pabda Tk400 to Tk450. Shrimp is selling for Tk800 to Tk1,000, while small mixed local fish costs Tk600 to Tk700. Mola is similarly priced at Tk600 to Tk700, while tengra is selling for Tk500 to Tk600.
Pomfret is among the more expensive varieties, costing around Tk1,400 to Tk1,500 a kilogram. Boal ranges from Tk700 to Tk900. A one-kilogram Padma hilsa is selling for Tk2,000 to Tk2,200, while hilsa of the same size from Chattogram is around Tk1,800.
Consumers say these increases are particularly difficult because several essential food items were already expensive. The latest rise in vegetables and fish prices is forcing many households, especially those on limited incomes, to reconsider what they buy and how frequently they shop.
Chicken and eggs remain expensive
Prices of chicken and eggs have also remained elevated. Broiler chicken is currently selling for Tk180 to Tk200 a kilogram, while Sonali chicken costs Tk350 to Tk370. Beef is priced at around Tk800 a kilogram and mutton at Tk1,200.
Egg prices have also remained high. A dozen is generally selling for around Tk150, although some retail markets are charging Tk160. Four eggs therefore cost Tk50 or more in some places.
Consumers say the persistence of these prices has made it increasingly difficult to maintain previous purchasing patterns. Families that once bought larger quantities of protein are now adjusting their choices according to their available budget.
Soybean oil supply tightens
The market for bottled soybean oil has added to the concerns. One- and two-litre bottles have become less readily available in some markets, while traders say supplies of five-litre bottles have also declined slightly.
Earlier this month, edible oil refiners and producers increased the price of bottled soybean oil by Tk5 a litre, taking the price to Tk204. Traders say supplies initially remained relatively normal after the increase but later became tighter in some areas.
Some retailers claim suppliers have suggested that companies may be considering another price increase. However, traders acknowledge that there has been no formal announcement from the companies confirming such a move, and supply shortages have not been reported uniformly across all markets.
Prices of flour have also increased. Over the past month, loose atta has risen by around Tk5 a kilogram, while loose maida has increased by up to Tk10. Atta is now selling for about Tk50 a kilogram and maida for Tk65 to Tk70.
Other grocery staples remain expensive as well. Potatoes are selling for around Tk30 a kilogram, local onions for about Tk50, local garlic for Tk100 to Tk140 and local ginger for Tk140 to Tk160.
Transport costs at the centre of concern
The most immediate channel through which higher fuel prices affect food markets is transportation. Goods must travel from farms and production centres to wholesale markets before reaching retail outlets, and each stage carries costs for fuel, labour and handling.
The effect can be more pronounced for perishable agricultural products transported over long distances. Even a relatively small increase in transport charges can add to the final retail price when goods pass through several stages of the supply chain.
Traders say freight charges for goods-carrying trucks and covered vans have already increased on some routes. They argue that the additional expense is being reflected in wholesale and retail prices.
The relationship between fuel prices and food prices, however, is not uniform. A rise in transport costs does not automatically mean that every product will increase by the same amount. Production costs, availability, seasonal supply, demand, transport distance and wholesale market conditions all influence the final retail price.
If higher fuel costs persist, their effects could gradually extend beyond transportation and into other areas of production. For agricultural goods, for example, increased costs related to irrigation and other inputs could eventually affect market prices.
Households change their shopping habits
The pressure is already changing how people shop. Instead of purchasing according to their usual household requirements, many consumers are setting a fixed budget before going to the market and then adjusting their shopping list accordingly.
Ariful Islam, a private-sector employee from Mohammadpur, told RisingBD that he now has to calculate his available money before preparing a shopping list. If fish is too expensive, he switches to chicken; if chicken is also costly, he considers eggs or other alternatives. The same amount of money, he said, no longer buys the same quantity of goods.
Akleema Akter, a housewife from Rayerbazar, said she previously bought fish, chicken and eggs in quantities sufficient for several days. She now purchases smaller amounts every two or three days because buying everything at once requires too much money.
For people with irregular incomes, the adjustment can be even more difficult. Abul Kashem, a day labourer from Hazaribagh, said that when work is available he can manage household expenses, but when work declines he has to reduce his shopping list. Buying fish or chicken means cutting back on something else.
The changes are also affecting retailers. Didarul Islam, a chicken seller at Karwan Bazar, said customers often ask about the price before deciding how much to buy. Someone who previously purchased a kilogram may now settle for half a kilogram, while some customers leave without buying anything if they find the price too high.
Egg seller Jasim Hawladar at Mohammadpur Krishi Market said customers who once bought two or three dozen eggs are increasingly purchasing smaller quantities. Some buy only six eggs, while others avoid buying more than one dozen.
Retailers argue that their selling prices are not determined solely by their own decisions. Wholesale purchase prices, transportation, labour, shop rents and other operating expenses all contribute to the final price.
Fish seller Shihab Molla at Karwan Bazar said higher prices also hurt retailers because customers buy less when prices rise. He said traders cannot always reduce prices because selling below their purchase cost would result in losses.
At New Market, another fish seller, Hasib Bepari, said families that previously bought two kilograms of fish were increasingly purchasing one kilogram, while some were replacing a larger chicken purchase with a smaller one. Retail sales have therefore declined even though transport and other business expenses remain.
Purchasing power under pressure
The result is a cycle of pressure across both sides of the market. Consumers have less purchasing power, while retailers face higher wholesale and operating costs. As a result, shoppers may buy less without necessarily causing retail prices to fall.
For many households, the impact is being felt directly in daily meals. Instead of deciding what to buy according to household needs alone, families are increasingly making food choices based on what their budgets can accommodate.
SM Nazer Hossain, vice-president of the Consumers Association of Bangladesh, said higher fuel prices affect essential goods through increased transportation costs. As prices rise, consumers’ purchasing power falls and demand can also weaken.
He said monitoring should examine whether any price increases are unjustified and identify where additional costs are being added along the supply chain.
The immediate impact of the fuel price increase is already visible in parts of Dhaka’s food markets, particularly in fresh produce and fish. Whether the pressure spreads further will depend on how transportation costs, production expenses, supplies and market conditions evolve in the coming weeks.
