Fuel price adjustment necessary to curb smuggling, state minister says.
State Minister for Power, Energy and Mineral Resources Anindya Islam Amit has said fuel prices had to be adjusted to prevent smuggling.
Fuels are purchased with foreign currency. But due to low price in the neighbouring countries it was being smuggled. So it was very crucial to increase the fuel price.
Moreover, due to Middle East war the price of fuel shoot up in the international market, compelling the government to give huge subsidy for fuel. Such subsidy should be contained to continue the government’s social protection programmes, he said.
The state minister said this at a press conference held at the Secretariat today.
Referring to fuel prices in neighboring and other countries, the state minister said, in term of Bangladesh currency the price of diesel per litre is Tk 134.76 in Kolkata; Tk 164.83 in Myanmar; Tk 161.24 in Nepal; Tk 179.42 in Sri Lanka; Tk 151.22 in Thailand; Tk 137 in Vietnam; Tk 140 in the Maldives; Tk 168.53 in the Philippines; Tk 185.48 in Pakistan; and Tk 144.79 in Dubai of United Arab Emirates.
He said that if the automatic pricing mechanism were fully implemented in line with international market prices, the price of diesel should have been fixed at Tk 205 per litre. However, considering the financial burden on the general people, the public transport sector and farmers dependent on irrigation, the government has kept the price considerably lower and at a tolerable level by providing substantial subsidies.
“Under such circumstances, the adjustment had become necessary to prevent smuggling and ensure the continuation of the government’s social protection programmes,” he said.
Regarding the ongoing international and Middle East crisis, the state minister said, 70 percent of the country’s imported fuel and 20 percent of the global energy supply pass through the Strait of Hormuz route. The current Middle East crisis has created an unprecedented situation, which is different and more complex than the Covid-19 pandemic or the Russia-Ukraine war.
Highlighting the financial capacity of Bangladesh Petroleum Corporation (BPC), he said, BPC had been able to manage the situation without increasing prices so far, despite incurring losses of Tk 22,875 crore, because additional funds earned in the past had remained in its coffers. Although prices in the international market change every moment, efforts were made to protect the people by not making immediate adjustments.
Regarding the impact of the price adjustment decision on the people, the state minister said, “As a political worker, I understand the suffering that the people will face because of this decision. As there was no alternative ahead, this difficult decision had to be taken. For this, I sincerely apologize to the people.”
The state minister assured that the government, along with the ministries of Road Transport and Bridges and Shipping, is working jointly to prevent unscrupulous groups from taking advantage of the situation by charging excessive transport fares or creating artificial shortages in the market. At the same time, market monitoring has been strengthened to ensure that the impact on ordinary people remains at the minimum possible level.
Regarding the IMF (International Monetary Fund) loan and its conditions, the state minister said, the loan had not been taken during the current democratic government but obtained in the past.
“If there is an obligation to comply with the loan conditions, the matter will be examined and necessary measures will be taken,” he said.
The government last night adjusted fuel prices at the consumer level for September in line with international market prices. Under the adjustment, the price of diesel was fixed at Tk 135 per litre, octane at Tk 165, petrol at Tk 160 and kerosene at Tk 155.
