Kazi Zahidul Hasan :
Welcoming the government’s decision to reduce prices of petroleum products, business leaders yesterday said there is scope for further cuts as crude oil prices in the international market have dropped from about $147 to less than $43.
“The fuel price cut would lower factory production, costs of doing business and further ease inflationary pressure,” Abdul Matlub Ahmad, President of the Federation of Chamber of Commerce and Industry (FBCCI) told The New Nation on Monday.
He said, “It is a very timely move because this will benefit all industrial sectors which were earlier burdened by high cost of production. It will also give some sorts of relief to the consumers who also hit by high fuel prices”.
Matlub Ahmad also said that the national economy will receive an outsized benefit from lower oil prices because it will help businesses to flourish and leave a positive impact on consumers spending. The FBCCI leader urged the government to review the fuel prices from time to time if the crude oil prices continue to hover in the range of $50 per barrel.
“I think there is a further scope to cut domestic fuel prices when crude oil prices continue to fall in global market,” he added. “The government’s decision to cut fuel prices was a major step towards reviving the country’s ailing industrial sector,” Syed Nasim Manzur, President of the Metropolitan Chamber of Commerce and Industry (MCCI), told The New Nation yesterday. He said, the country’s industrial sector is now in trouble due to rising cost of production coupled with power and gas crisis. In such troubled situation, the reduction of fuel prices will act as a stimulus for various industrial sectors and make them competitive in global arena.
“The reduction in fuel prices will also help in reducing cost of doing business as well as boost industrial production,” he added. “Many industrial units are now surviving on fuel propelled generators and the latest fuel price cut will offer them the much needed relief,” Abdus Salam Murshedy, President of the Exporters Association of Bangladesh (EAB) told The New Nation yesterday. He said the cost of industrial production was rising steadily for the last few years due to high energy prices. The cheaper fuel would reduce cost for industry and ease financial pressure on manufacturers and small businesses.
The EAB leader also expects that the cut in fuel prices would boost overall economic activity as the cost of production decreases for businesses, especially for those that is heavily dependent on oil inputs. “This will boost both investment and employment,” he said.
When asked, he said, the reduction in the oil prices would have positive impact on sectors such as exports, agriculture and transport. “Real household incomes are also expected to rise as oil prices fall, which would increase consumer spending,” Murshedy said.
