Int’l fuel price hike raises local market price: Kamal

Int’l fuel price hike raises local market price: Kamal

DHAKA, Nov 10, 2021 (BSS) –

Apparently pointing out the fuel price hike in

international market as the main reason for recent hike in domestic market,
Finance Minister AHM Mustafa Kamal today said that the fuel price in
international market is consistently on the rise and it is not a secret
matter.

“When the fuel price was less in the market, the consumers received its
benefits. But, now the price has increased (in international market) and it’s
not a secret matter,” he said.

The Finance Minister was replying to a barrage of questions virtually
after chairing two separate meetings on the Cabinet Committee on Economic
Affairs (CCEA) and the Cabinet Committee on Government Purchase (CCGP).

Since Bangladesh is not an oil producing country, it could not intervene
the market quite often, Kamal said, adding: “Bangladesh is at the receiving
end and there are many reasons for fuel price hike.”

He, however, said that the government would remain alert so that the
consumers could bear or tolerate the impacts of the fuel price hike.

Earlier on November 3, 2021, Bangladesh Petroleum Corporation (BPC) raised
the prices of diesel and kerosene at the retail level– to be effective from
zero hours on November 4, 2021.

The prices of diesel and kerosene have been increased to Taka 80 per litre
from Taka 65 indicating a 23.1 percent rise while the price of furnace oil
has also been raised to Taka 62 per litre from Taka 59 which indicated 5.1
percent increase.

Kamal said the government has to earn revenue for meeting up its huge
expenditure. “Without revenue, the government won’t be able to implement
development projects. We don’t want to lag behind, we’ll move forward with
sharing arrangement…We will share while the rest will be borne by the
government,” he added.

He continued that the government did never increase the price of fuel oil
abruptly while the impact of the fuel price hike could be ascertained later
on.

The Finance Minister said that the government usually bears the most of
the subsidy cost and then the rest is imposed on the consumers.

Asked whether the government has any plan to reconsider the recent hike in
fuel price, he said if the concerned authorities have increased the price
abruptly without any basis and if they have done so, then the subject would
be under consideration.

Replying to another question, he said when Bangladesh Petroleum
Corporation (BPC) was doing hefty profit with the lower international fuel
price, then they also kept lower price in the domestic market.

Mentioning that the government has to bear the most of the subsidy cost in
fuel oil, Kamal said the consumers would also have to share some cost.

“The Government has to earn money to meet its huge expenditure, especially
in different social safety net schemes…,” he added.

The Finance Minister also informed that he would give the item-wise price
hike of fuel possibly in the next meeting through which it would be possible
to know how much the government would be able to bear.