Ukraine crisis: Artificial shortage pushes up edible oil prices

Kakinada: The Edible Oil Companies and wholesale dealers have hiked oil prices abnormally on the pretext of war in Ukraine. After the beginning of war, the shipment in Ukraine has been stopped and there is no possibility of exporting oil to India from Ukraine. Taking this opportunity, the oil companies created artificial oil shortage and increased prices. Wholesale dealers also increased prices of edible oil.

But it was alleged that the State government, particularly the Civil Supplies Department, did not take any steps to control prices.

According to an oil company official, the shipment was stopped in Ukraine and the supply was also stopped. He said that it takes 25 days to anchor a ship at Kakinada Port from Ukraine. With the stoppage of supply at Ukraine, automatically the oil prices have been hiked as the companies will chalk out plans on the imports of oil and existing production and increase the prices.

The wholesale oil dealers in Kakinada, Amalapuram and Rajamahendravaram and other areas in the district also hiked the oil prices abnormally and they attributed the reason for the hike on oil companies. According to an official, edible oil prices need not be increased as the Ukraine war began four days back only and already, the oil companies have sufficient oil stocks as the previous shipments already unloaded the crude oil through Kakinada Port.

Consumers alleged that the oil traders created artificial shortage which was not correct. They feel that in the last four days the prices of the oil were abnormally hiked burdening the common man. The consumers requested the state government and the officials to check the oil prices.

Speaking to The Hans Indai, V Ganapathi Rao, wholesale dealer from Rajamahendravaram, justified the hike of oil prices. "If oil companies hike price, naturally the traders would increase the price." According to oil traders, the oil prices can be hiked further in the coming days.

A consumer P Srinivas said that the palm oil was at 145 and now it is available at Rs. 165. He said that the government is showing keen interest in checking the rates of cinema tickets, whereas it is showing little concern and interest regarding the high cost of the edible oil.

District Civil Supply Officer Prasada Rao told The Hans India that immediate steps will be taken to curb the cost of oil. "The State government is watching the situation and necessary steps will be taken to control the price of the oil."

Whatever may be the factors, the impact of the conflict between Ukraine and Russia has adversely affected the edible oil prices in the country.