Fuel price hike will negatively impact RMG export growth: BGMEA President

| Updated: August 09, 2022 10:29:25

Fuel price hike will negatively impact RMG export growth: BGMEA President

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) expressed concern over the hike in fuel price saying it will have an impact on export growth.

BGMEA President Faruque Hassan told UNB on Saturday that many garment industries will suffer losses and a number of them may face the risk of shutting down.

"The export earning target set for this year unlikely to be achieved thanks to hike in fuel price. Garment owners will count losses for already received orders and many factories won't be able to go for new production. As a result, the export target will not be achieved," he said.

He said there is a gas supply crisis in the factories and those are experiencing load shedding for 5-6 hours as per the government's decision to save energy. In this situation, the increase in fuel price is a big challenge for the garment sector, he added.

As prices of fuel have increased, transport fares and prices of goods will increase, said the BGMEA president adding the salary of the workers should also be increased and then there will be no other option other than closing down many factories.

In an abrupt move, the government increased the prices of diesel, octane and petrol by 42.5 per cent, 51.7 per cent and 51 per cent respectively Friday night. Currently, diesel is being sold at Tk 114 per litre, octane at Tk 135 per litre and petrol at Tk 130 per litre.

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