Kazi Zahidul Hasan :
Energy experts and business leaders on Friday urged the government to lower the prices of fuel oils, as their prices in the international market marked a significant fall.
They said the neighboring countries, including India, have already reduced fuel prices. But the government of Bangladesh is yet to come up with any positive decision in this regard putting the burden of the local consumers to pay additional money.
Global oil prices have declined to $88 a barrel in the recent months from $116 per barrel in June last year amid weak global growth and abundant supply.
Sources said, Bangladesh Petroleum Corporation (BPC) procured oil in June last at $115 a barrel and its latest procurement rate was $97 a barrel.
“Consumers of Bangladesh are missing out on the benefits of a global slide in oil prices because of the government’s apathy to cut down their prices,” Prof Shamsul Alam, an energy expert, told The New Nation Friday.
The government earlier promised to lower fuel prices in line with international market prices. But it is now reluctant to do it in the interest of the sponsors of fuel-fired power producers.
He said, the home consumers have forced to pay extra money despite price fall in global market fueling discontent among them. Terming present policy of power and energy sector is a ‘faulty one,’ Prof Shamsul Alam said, the governments move to generate electricity from fuel-based power plants will not only put additional burden on the consumers but it will also bring disastrous impact on the national economy.
He also urged the government to refrain from such policy persuasion and made the suggestion to built energy efficient power plants to ensure sustainable development of the country’s power and energy sector.
Prof Shamsul Alam also criticized the government’s move of raising electricity and gas prices afresh saying that the move will intensify sufferings to the fixed income group consumers and raise production cost of industries and consequently pushing up inflationary pressure on the economy.
“The government should reduce petroleum prices for domestic use considering their price fall in the global market,” said Abdus Salam Murshedy, President of Exporters Association (EAB). He said when the manufacturing sector is burdened by high production cost resulted from repeated hike in electricity and fuel prices, a move to reduce fuel prices from the part of the government would be a great relief for us.
Murshedy explained that industrial units especially the export-oriented industries are consuming a substantial quantity of fuel oils to run their captive power generators. Use of fuel oils for this purpose is not only raising cost of production but also affecting their competitiveness in the global arena.
Under this circumstance, a cut in fuel price would help them lower their operational costs as well as enhance their edge in the global market, he added. He further said readjustment of fuel prices would also help reduce cost of goods production, services and transports benefiting to the general people.
“It will be logical to lower fuel prices in the domestic market when global crude oil prices came down significantly,” Md. Shafiul Islam Mohiuddin, former President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Such a price cut will leave a positive impact on every sectors including garments industry, he added.
“The government can consider the issue but not in general. Some specific sectors like agriculture and export-oriented sectors could be brought under the purview of fuel oil price readjustment,” said former Bangladesh Bank governor Dr Salehuddin Ahmed. He said, I see no logic for cutting the fuel prices on straight way because the government is still providing subsidy to fuel oils. When approached for comment, Nasrul Hamid Bipu, State Minister for Power and Energy, said, the government has right now no plan to downward adjustment of fuel oil prices although fuel oil prices marked fall in the global market.
He, however, said that the government is devising a strategy to give the benefits of declining fuel prices to the farmers who are using diesel for irrigating their fields.
