Kazi Zahidul Hasan :
The cost of living is expected to rise further on new gas prices that saw a 32.8 per cent rise for all consumers, according to Consumer rights groups and economists.
They said, the latest gas price hike would push up factory production and transportation cost. As a result, prices of basic commodities and services would go up seriously affecting the overall cost of living.
“The rise in gas prices is set to have a spiral effect on production chain, further pushing up the cost of living. The impact of the hike on living cost will be much greater on low and lower-middle income people,” Ghulam Rahman, President of the Consumers Association of Bangladesh (CAB) told The New Nation.
He said the rise in the utility prices would also push up the country’s overall inflation.
“The general public would suffer most as the rise in gas prices are likely push up cost of services and consumer products taking away their spending power,” Prof Shamsul Alam, Energy Adviser of (CAB), told The New Nation.
He cited that prices of most consumer products would go up as manufactures pass the high production cost to consumers as a result of gas price hike.
“The government has raised gas tariff seventh time in the last ten years causing huge burden to consumers,” said Prof Shamsul Alam, adding, “The sustained gas price hike also affect edge of local industries.”
He observed that the government becomes reckless while collecting excess revenue from gas sector by cutting people’s wallet to finance a large budget deficit and to hide the corruption of state-owned gas distribution companies.
Terming the move ‘anti-people’, Prof Shamsul Alam urged the government to adopt a long-term energy pricing policy to ensure supply of cheap gas to all consumers.
“Gas price hike will have an obvious impact on people’s living cost and economy,” Dr AB Mirza Azizul Islam, a former finance adviser to the caretaker government, told The New Nation.
He said increased gas prices are likely to stir up transport cost and commodity prices, making life more difficult for people who are already hit by soaring commodity prices, house rent and utility bills.
“Transportation cost would go up due to hike in price of compressed natural gas (CNG) and it may also increase the prices of commodities,” noted Mirza Aziz.
Terming the latest gas price hike, ‘illogical,’ noted economist Dr Ahsan Mansur said that the increase in gas price would create additional burden to poor and middle-income people.
“The burden would be bigger for private sector’s job holders, whose income remain static over the years,” he added.
