It is quite surprising that our government is increasing energy prices at a time when India, China, Cambodia, Vietnam and Philippines have already slashed fuel oil prices to reach the benefit of lower oil price in international market. And when oil price is at a low gas price is also at lower level. Our government justification that gas cylinder cost is higher to force households to pay high gas price is not acceptable when it is hitting the entire economy. The Apex trade body-the FBCCI has rightly decried the decision as anti-business to sharply cut the business competitive, mainly for exporters. The Exporters Association of Bangladesh (EAB) has also voiced anxieties because the new price hike will add 15 percent to their cost of power in two phases for the industrial sector. It will be a too big rise in cost of doing business. So the Dhaka Chamber of Commerce and Industry (DCCI), which is the largest trade body of the country has already urged the government to review the decision considering its negative impact on business, inflation and transport sector, besides hitting hard household users.
The industrial sector, particularly the ready made garment industry is feeling nervous because the industry is solely dependent on gas and the price hike would increase the cost of production at a time when international buyers are cutting prices on various reasons. Brexit is slashing British import and uncertainty about Trump administration is causing fear of export fall. This is a time for cost reduction measures to keep the competitiveness of export, the industry leaders say while decrying the big rise in cost of doing business. We also share their concerns asking the government that its steps to recover cost of inefficiency, compensation for corruption at all public offices and mobilizing additional revenue for a government that lacks competency are totally unjustified and illogical. It must review the decision to keep things manageable.
What is at greater stake is that investment in the economy is quite sluggish over the recent years for many reasons including fear of political uncertainty and bureaucratic highhandedness discourage investors to set up new business. But now the energy cost is going to be the biggest challenge that the government must reckon with.
