Nepal Sees Surge in Edible Oil Prices, Burdening Consumers

Nepal has witnessed a significant surge in edible oil prices, putting a strain on consumers’ budgets. The prices of all types of edible oils have skyrocketed, with some varieties seeing a hike of up to 15 rupees per liter in just 15 days.

According to data from the Nepal Retailers’ Association, the price of edible oils has increased by 40 to 50 rupees per liter over the past year. The price of sunflower oil, for instance, has risen from 245 rupees to 290 rupees per liter, while the price of mustard oil has increased from 250 rupees to 280 rupees per liter.

The surge in edible oil prices has been attributed to various factors, including the increase in global prices and the depreciation of the Nepalese rupee against the US dollar. However, retailers claim that the prices are being artificially inflated by manufacturers and importers.

‘They (manufacturers) do not have a fixed price, it changes every day,’ said Amul Kaji Tuladhar, general secretary of the Nepal Retailers’ Association. ‘Sometimes they say the price of raw materials has increased, sometimes they say the price of the dollar has increased, and sometimes they say the transportation cost has increased. But how can the price increase overnight?’

Manufacturers, on the other hand, claim that they are not responsible for the price hike. ‘We have not increased the price of edible oils,’ said Bikas Dugad, president of the Nepal Vegetable Ghee and Oil Producers’ Association. ‘The price fluctuates based on the international market and the exchange rate.’

Dugad denied allegations that manufacturers are exporting edible oils to India, thereby reducing the supply in the Nepalese market and driving up prices. ‘This is a completely false accusation,’ he said. ‘We are operating in a competitive market, and no one can increase prices at will.’