Fuel price hike entirely done in bureaucratic way

The process by which the government raised fuel prices lacks accountability and transparency, and it was entirely done in a bureaucratic way.

Different South Asian countries, including India, have implemented fuel price adjustment policies, but Bangladesh has not done so. The government has been fixing fuel prices on an ad hoc basis.

In the last seven years, the Bangladesh Petroleum Corporation (BPC) made a huge profit without any price cut though fuel prices fell in the international market.

The authorities are making fuel gains from two sides. They are collecting 30%-32% duty on fuel oil. Besides, the BPC profited for a long time as it did not lower the prices despite the global market fall.

I am not against increasing fuel prices now. Some adjustments were needed to cope with the huge subsidy burden. But there is no justification for such an abnormal hike. And the prices were increased at such a time when fuel is falling in the international market.

The prices should not have increased so much if the government reduced the duties slightly.

The fallout will be enormous – affecting the country's economy and people's lives. Costlier business, agriculture and transportation will fuel inflation further. People will be compelled to skimp on essentials such as education and medical care.

Suffering for all sectors, especially the small and medium ventures who got jeopardised during the pandemic, will prolong.

The fuel hike coupled with pricier fertiliser will also have a brutal impact on agriculture. The government should introduce irrigation cards for farmers and provide them with subsidised diesel at least.

The government also should widen its social safety net and increase the beneficiaries of the subsidised food programme.