TE24 Bangladesh Desk:
Bangladesh Petroleum Corporation (BPC) has increased the price of diesel by Tk 34 per litre.
A statement from the Department of Energy, Energy and Natural Resources on Friday night (August 5) said the new duty, effective from midnight, will cost a liter of diesel 114.
Prices of other fuels have also increased. Octane price increased by 46 taka to 135 taka per liter.
Also, consumers have to spend Tk114 to buy one liter of kerosene. The price hike – 42.5% for diesel and kerosene and 51% for octane – follows an earlier announcement by Energy Minister Nasrul Hamid.
State Minister Nasrul Hamid defended his BPC move saying that the popular Awami League government always takes decisions keeping in mind the comfort and convenience of the citizens.
He said that the government will not increase the price of kerosene as long as possible. Some adjustments need to be made in view of the global situation.
In April 2016, the government reduced the price of kerosene. Nasrul Hamid said that if the situation is normal, the price of kerosene will be adjusted accordingly.
Reacting to the government move, Shams Mahmood, former chairman of the Dhaka Chamber of Commerce, said it would harm the recovery of both the export sector and the CMSE industry, which plays a major role in the domestic economy.
Due to load shedding and low gas pressure, the RMG and its afterlife industries are already in trouble, along with a volatile FX market. This will further weaken our competitive advantage in an already difficult environment.
This, combined with rising fertilizer and fuel prices, will lead to food inflation, putting pressure on those on fixed incomes.
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