FUEL PRICE HIKERipple effect on transport, essentials looms large

Common people are worried over further hike in fuel price as they fear that it would affect agricultural production, increase the cost of transporting foods, which in turn would increase the price of essentials.

Economists said amid high inflation, the country’s people are already suffering a lot and bearing the brunt of price hike of essential commodities, and the latest hike will just exacerbate their sufferings.

On 30 May, the government issued a gazette notification increasing the prices of diesel and kerosene by Tk0.75 per litre, bringing them to Tk107.75 from Tk107.

Petrol price was also increased by Tk2.50 per litre to Tk127, while octane price was raised by Tk2.50 per litre to Tk131. The new prices took effect on Saturday (1 June).

This marks the fourth adjustment of fuel prices as part of the government's automated pricing system, which aligns local fuel prices with international market rates.

The Energy and Mineral Resources Division set these new prices through a gazette notification in accordance with government policy.

Just a month earlier, on 30 April, the prices of diesel and kerosene were raised by Tk1 to 107 per litre from Tk106. The price of petrol was increased to Tk124.50 per litre from Tk122, and octane price to Tk128.50 per litre from Tk126.

Those prices came into effect from 1 May.

Consumers Association of Bangladesh (CAB) President Ghulam Rahman said if prices of fuel are increased this way every month it would hit people hard.

He said, “Prices of all necessary commodities are already high, and, in addition to that, the fuel prices are also increased. This will impact all the sectors. Especially, the low-income people will be hurt.”

He also said, “The government has said they want to adjust the price of fuel every day in line with the international market.

They are now adjusting the price every month.  BPC (Bangladesh Petroleum Corporation) can adjust prices without any permission from the energy regulatory commission. People’s backs are pushed against the wall as only prices of essentials are increasing, but not their incomes.”

Mahbubur Rahman, a private company employee and a resident of Middle Badda, said, “In villages, okra is sold at Tk10-15 per kg but we have to buy it at Tk50 per kg only for the higher transport cost which is caused by the rising fuel prices.”

Alomgir Hossain, a security guard of a private company in Motijheel in the capital, said he fears about a hike in transport fare.

He said, “When the price of diesel is increased, fares of bus, CNG-run auto-rickshaw and other transport also increase, but does our salary increase? The government should look at us. Nobody considers how we lead our lives amid high prices of every essential thing.”