Kazi Zahidul Hasan :
Business leaders have urged the government to slash domestic oil prices to pass on the benefit of the falling global crude oil prices to the local manufacturing sector.
They said, prices of petroleum products have fallen substantially in the international market during the last six months. But the consumers at home are not getting the benefit thereof due to the government’s inaction.
“The price differential should be made in domestic market immediately to pass the benefit to the industrial
consumers,” Kazi Akram Uddin Ahmed, President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) told The New Nation on Wednesday.. Such a step will give immediate relief to the manufacturing sector to reduce its cost of production, he added.
He further said that FBCCI will convene a board meeting soon to discuss the matter. “After the meeting, we will make an official request to the government in this regard,” he added. FBCCI President further said that the industrial sector was facing hardship in the wake of rising cost of production, poor infrastructure and high lending rates.
“Production cost of local industries has increased significantly in the last few years following frequent increase in fuel and electricity prices,” he noted. When the sector is burdened by high cost of production, a downward readjustment in fuel prices could lower production cost, providing a much needed breathing space for local industries.
“We expect a realistic policy from the government in this regard. A changed policy could help flourish the local industries,” said Abdus Salam Murshedy, President of the Exporters’ Association of Bangladesh (EAB). He added that global fuel prices had dropped over 40 per cent during the last six months paving the way of an immediate downward readjustment of their prices in domestic market. “If the government does not respond to the economic realities arising from the global price fall, it will send the industries towards further hardship,” he added.
Murshedy claimed that frequent price hike of fuel and electricity increased the burden on the country’s manufacturing sector, pushing it to face an uneven competition with other global players.
“Many industries, particularly export-oriented ones, are facing immense challenge to hold their global presence following rise in their production cost. So, a price cut of petroleum products in domestic market could help industries tide over such difficult situations,” he noted.
He further said if prices of oil were reduced in the domestic market, cost of transportation would decline and commodity prices would go down and the whole economy would be benefited by increasing productivity of the industries.
And such a decision will be logical and rational, he added.
