Anisul Islam Noor :
The government has planned to cut the price of A-1 jet fuel further, known as aviation fuel, by about eight percent. But the prices of other petroleum products will remain unchanged.
Though the oil prices fell drastically in the international market, there was little impact thereof in Bangladesh, said Consumers Association of Bangladesh (CAB).
Business quarters increased their demand for oil cut as per ratio, as there is no sign of any increase in the near future, said Professor Shamsul Alam, adviser of CAB.
The domestic market is always connected to the international one. Whenever oil prices rise in the international market, it is raised here instantly. But when price falls, it has no effect here. Since oil prices have fallen by one-third in the international market. Why price should not be decreased in Bangladesh? Questioned Shamsul Alam.
Business men of the country say that a cut in oil prices is essential for the sake of economic growth, Economists and experts say if oil prices are reduced, inflation will come down too. Investment and production will increase. This will be fruitful for economic growth.
Centre for Policy Dialogue (CPD) says if the price of fuel oil is reduced by 10 percent on average, GDP growth will increase by 0.3 percent. CPD has also called for a reduction in fuel prices.
Contrarily, the Finance Minister has said, the government did not reduce prices, because it wanted to compensate the Bangladesh Petroleum Corporation’s losses.
This is for the third time the BPC has slashed the A-1 jet fuel price in 2015. The BPC last reduced the jet fuel price in August 18, 2015.
Brent crude, the benchmark in oil prices for international market, fell to an 11-year low around US$ 35 per barrel recently from maximum $ 120 per barrel.
“It is good to see that the government has reduced the jet fuel prices,” Chief Operating Officer of Regent Airways Ashish Rai Choudhury said.
But the extent of the price cut is not sufficient, he said, adding that cut should have been extensive further to ensure competitiveness of local airliners with foreign ones.
When contacted, a senior official concerned said, the government has no immediate plan to reduce the prices of other petroleum products in domestic market.
Association of Travel Agents of Bangladesh (ATAB) Secretary General Aslam Khan also welcomed the price cut in jet fuel.
“We are expecting that all airliners operating domestically and internationally from the country will reduce airfares in line with the price cut,” he said. Consumers would also be happy to travel at cheaper airfares, said Mr Khan.
The country buys around 350,000 tonnes A-1 jet fuel every year from Kuwait Petroleum Corporation (KPC) and Petco Trading Labuan Company Ltd, the trading arm of Malaysia’s Petronas.
The government has planned to cut the price of A-1 jet fuel further, known as aviation fuel, by about eight percent. But the prices of other petroleum products will remain unchanged.
Though the oil prices fell drastically in the international market, there was little impact thereof in Bangladesh, said Consumers Association of Bangladesh (CAB).
Business quarters increased their demand for oil cut as per ratio, as there is no sign of any increase in the near future, said Professor Shamsul Alam, adviser of CAB.
The domestic market is always connected to the international one. Whenever oil prices rise in the international market, it is raised here instantly. But when price falls, it has no effect here. Since oil prices have fallen by one-third in the international market. Why price should not be decreased in Bangladesh? Questioned Shamsul Alam.
Business men of the country say that a cut in oil prices is essential for the sake of economic growth, Economists and experts say if oil prices are reduced, inflation will come down too. Investment and production will increase. This will be fruitful for economic growth.
Centre for Policy Dialogue (CPD) says if the price of fuel oil is reduced by 10 percent on average, GDP growth will increase by 0.3 percent. CPD has also called for a reduction in fuel prices.
Contrarily, the Finance Minister has said, the government did not reduce prices, because it wanted to compensate the Bangladesh Petroleum Corporation’s losses.
This is for the third time the BPC has slashed the A-1 jet fuel price in 2015. The BPC last reduced the jet fuel price in August 18, 2015.
Brent crude, the benchmark in oil prices for international market, fell to an 11-year low around US$ 35 per barrel recently from maximum $ 120 per barrel.
“It is good to see that the government has reduced the jet fuel prices,” Chief Operating Officer of Regent Airways Ashish Rai Choudhury said.
But the extent of the price cut is not sufficient, he said, adding that cut should have been extensive further to ensure competitiveness of local airliners with foreign ones.
When contacted, a senior official concerned said, the government has no immediate plan to reduce the prices of other petroleum products in domestic market.
Association of Travel Agents of Bangladesh (ATAB) Secretary General Aslam Khan also welcomed the price cut in jet fuel.
“We are expecting that all airliners operating domestically and internationally from the country will reduce airfares in line with the price cut,” he said. Consumers would also be happy to travel at cheaper airfares, said Mr Khan.
The country buys around 350,000 tonnes A-1 jet fuel every year from Kuwait Petroleum Corporation (KPC) and Petco Trading Labuan Company Ltd, the trading arm of Malaysia’s Petronas.
