Global downtrend: DCCI pushes for adjusting fuel prices

| Updated: August 09, 2022 20:38:32

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A trade body urges the government to cut fuel prices once the trends come down in the international market for the greater good of the national economy.

The recent hike in fuel oil prices will have an immediate impact on transportation and essential commodities, it says.

"The cumulative impact of fuel price hike will put an inflationary pressure on the economy by raising operating costs of all energy-dependent businesses and industries."

The Dhaka Chamber of Commerce and Industry (DCCI) said in its reactions on the hike of fuel oils prices in a statement issued on Sunday.

Fuel tariff hike comes at a time when Bangladesh has just started to enter into an economic revival phase after a period of economic stagnation due to Covid-19.

Additionally, vehicles powered by octane and petrol will also bear the brunt of these increased costs.

The hike in fuel oil prices will also spike domestic freight costs and eventually lead to the cost of necessities across the country, reads a statement.

The DCCI observes that another major impact will be on the agri-production costs as diesel is widely used for irrigation purpose.

Recurring fuel and fertiliser price rises will also hamper food security and cause further public misery.

Manufacturing industries already suffer due to electricity rationing as diesel and LNG prices shot up globally, according to the statement.

However, this fuel price hike in addition to a recent hike in natural gas price will have a domino effect on the entire economy.

On August 05, the government increased the prices of all fuel oils despite a gradual fall in the global energy prices in recent times.

As such, the prices of all the refined fuel oil products have been increased by 42.5-52 per cent. Diesel is the most-consumed fuel in Bangladesh, accounting for an estimated 73 per cent of the total fuel consumption.

For instance, 90 per cent of the transport sector is dependent on diesel, adds the statement. It calls for strictly following the government's austerity measures in case of consumption.

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