To Whom It May Concern,
The government of Bangladesh has increased the price of fuels such as diesel, kerosene, petrol and octane recently. According to available sources, the government raised the fuel price up to fifty one percent per liter. The previous price of octane was BDT 89 while the new price is BDT 135 per liter. But the decision was made unilaterally, though such a decision deserves to be made by public hearings. For the justification of the price hike, according to available sources, the Ministry of Power, Energy and Mineral Resources in its press release referred to its rise in the international market. Of course, the hike in fuel price is not surprising at all at this time as its price has increased in many countries around the world. The current global increase in fuel price is mainly driven by the Russia-Ukraine war.
But the problem is that the rise in the fuel price has enormous effects on different economic activities and foods and services. Once the price of fuel is increased, it immediately increases the price of various goods and services. Already, bus fare has been increased by the Bangladesh Road Transport Authority by around fifteen percent in Dhaka and twenty two percent on long routes or in inter-district services. The rising cost of transportation from one place to another by motorized vehicles increases the price of other goods including vegetables and fruits that are transported from different localities to cities. Already, there is a rise in other goods in Bangladesh. Consequently, living costs can be increased. But there is no guarantee that the increased price of the fuel will decrease back to the earlier price even if it decreased in the international market.
No doubt, there are some seasonal variations in the price of goods and services and the price sometimes increases because of the hike in price in the global market. Though the current rise in the fuel price is due to its rising in the international market, the price is sometimes increased because of business syndicates, consisting of businessmen, political leaders and others. Indeed, such a practice is a common phenomenon in Bangladesh, which is improving economically and has the chance to improve in economic terms. The frequent price manipulation of local syndicates in the country is driven by the failure of the concerned authority to monitor the market and bring unscrupulous syndicates to justice. According to available sources, local syndicates are patronized by political leaders and concerned authorities.
Of course, the war has not yet ended. Thus, it is uncertain whether the price of fuel will decrease in the international market now or it will take time. Consequently, it is not a good decision to abruptly increase the price of fuel. Indeed, the government cannot deny its responsibility to make sure that the price does not rise to the extent that increases the price of other goods and services to a significant extent and puts pressure upon people. Thus, it is desired that the increase in the price of fuel does not go beyond the buying capacity and the market is monitored to keep the price under control and prevent ill-intended efforts to raise the price.
Amir M Sayem
Chief Editor
Dhaka Opinion Magazine
