Al Amin :
The unusual fuel price hike will have adverse impact in all the sectors. The transport sector will be affected severely. Production cost will increase several times as all sectors are related to the transport sector. The country’s inflation, which is already high, will increase further.
Increase in diesel price will have a direct impact on agriculture. Irrigation is needed during this Amon season as rains are insufficient this year. Failure to irrigate will disrupt rice production.
If agricultural production is disrupted, food imports will increase. Trade deficit, which is already record high, will get worse further.
“The abnormal rise in fuel price will affect all including industrial sectors. The government should have considered these issues before raising such price-hike,” Mirza Azizul Islam, former Adviser to the caretaker government, told The New Nation.
“People’s sufferings will increase further. Rising fuel prices will make the commodity prices even more unaffordable. The middle class will be bewildered. If the purchasing power decreases, people can no longer live well,” he said.
Dr Saleh Uddin Ahmed said, “The unusual fuel price hike is not logical. It is in no way called an adjustment. Rather it is called a unilateral decision. The government could take the decision phase by phase. Such a midnight decision could not be a people-friendly one.”
“Rise in fuel prices will affect everything. Cost of everything will increase. People’s access to services will decrease. The service price will increase. Even hospital expenses will increase,” he said.
“The government is comparing with the neighboring country India. Has India ever increased oil prices in this way? India has also record of decreasing oil prices. But in Bangladesh it did not happen,” he said.
He further said, “The government is talking about subsidies. Subsidy must be given. To keep the economy vibrant, you have to subsidize somewhere.”
“Stop wasting money. Stop money laundering. Stop unnecessary projects. If you stop these, you can give more subsidies on fuel, electricity, gas, fertilizer. This will make the economy stronger. Food security will be sustainable,” he said.
“This government has taken wrong policies one after another in the field of electricity. It’s enthusiasm for rental and quick rental has now backfired,” Dr Saleh Uddin said.
“Diesel-based power plants have been shut down. So what was the need to spend
thousands of crores money to make these?” he questioned.
“Adopting any policy, you should consider three phases– Short term, medium term and long term. So, a sudden decision on a temporary basis will not do any good. Now we can smell that evil,” he added.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has expressed concern over the hike in fuel price saying it will have impact on export growth.
BGMEA President Faruque Hassan said that many garment industries will suffer losses and a number of them may face risk of shutting down.
“The export earnings target set for this year unlikely to be achieved for hike in fuel price. Garment owners will count loss 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 further said there is gas supply crisis in the factories and those are experiencing load shedding for 5-6 hours as per the government 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 fare 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.
AKM Selim Osman, President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said, “The decision to unusual rise in fuel oil price, when it is falling in global markets has made us shocked. The export-oriented industries will fall into deep crisis for the decision.”
“We think, the abnormal fuel price hike will have a negative impact on the county’s overall industrial sectors including knit. The decision will also decrease competitiveness of the readymade garment sector,” he said in a statement issued on Saturday.
“BKMEA thinks that the government should find out alternative way by discussing with the stakeholders to overcome the situation,” Osman said.
