Anisul Islam Noor :
The government has back-tracked from its own decision on fuel-oil price cut as its prices have increased in the international market.
“The government will not reduce the prices of fuel-oil in near future as its prices have increased in the international market,” State Minister for Power, Energy and Mineral Resources Nasrul Hamid told The New Nation on Sunday.
He said, “Although we have sent a proposal to the Prime Minister’s Office for approval to reduce the fuel
price, the current market trend of fuel-oil does not allow us to reduce the prices.’ On November 17, Finance Minister AMA Muhith told reporters that the government would cut the prices of fuel-oil in the local market soon for higher economic ‘momentum.’
Since June 2014, the price of Brent Crude started declining from $117 per barrel and dropped as low as $27.65 a barrel in January 2016 before rebounding to $56.82.
The government earned approximately Tk 10,000 crore in the form of taxes and duties from fuel-oil and natural gas sector in 2015-16 financial year while it earned more than Tk 6,000 crore in profit.
On the other hand, the government has finalized the gas price hike plan which will affect production and transport sectors at home.
Bangladesh Energy Regulatory Commission Chairman Md Maksudul Haque said that the commission would announce the increased prices of natural gas this month (December) with effect from January 1. “We have received the government’s nod in this regard,” he said.
Maksud Haque said, “The decision of hiking gas prices could be avoided had the government exempted Petrobangla from paying the taxes of international oil companies in Bangladesh.”
The salaries and allowances of the government officials had been increased raising the cost of gas supplies, he added.
The Energy Commission last time raised the prices of natural gas by 26.29 per cent on an average at consumer level with effect from September 1, 2015.
In August 2016, the commission held a series of public hearings on the proposals of natural gas utilities for raising the prices again by 94 per cent on an average.
After midnight past April 24, the government slashed the prices of Octane and Petrol by Tk 10 per litre and Diesel and Kerosene by Tk 3 per litre.
On March 31, the government also cut the price of furnace oil, mostly used by power plants, by 30 per cent from Tk 60 to Tk 42 a litre.
The government drew severe criticism as the reduction in fuel-oil prices left no impact on local market as well as on the cost of living as it did not lower the transport fares or electricity prices.
The government has back-tracked from its own decision on fuel-oil price cut as its prices have increased in the international market.
“The government will not reduce the prices of fuel-oil in near future as its prices have increased in the international market,” State Minister for Power, Energy and Mineral Resources Nasrul Hamid told The New Nation on Sunday.
He said, “Although we have sent a proposal to the Prime Minister’s Office for approval to reduce the fuel
price, the current market trend of fuel-oil does not allow us to reduce the prices.’ On November 17, Finance Minister AMA Muhith told reporters that the government would cut the prices of fuel-oil in the local market soon for higher economic ‘momentum.’
Since June 2014, the price of Brent Crude started declining from $117 per barrel and dropped as low as $27.65 a barrel in January 2016 before rebounding to $56.82.
The government earned approximately Tk 10,000 crore in the form of taxes and duties from fuel-oil and natural gas sector in 2015-16 financial year while it earned more than Tk 6,000 crore in profit.
On the other hand, the government has finalized the gas price hike plan which will affect production and transport sectors at home.
Bangladesh Energy Regulatory Commission Chairman Md Maksudul Haque said that the commission would announce the increased prices of natural gas this month (December) with effect from January 1. “We have received the government’s nod in this regard,” he said.
Maksud Haque said, “The decision of hiking gas prices could be avoided had the government exempted Petrobangla from paying the taxes of international oil companies in Bangladesh.”
The salaries and allowances of the government officials had been increased raising the cost of gas supplies, he added.
The Energy Commission last time raised the prices of natural gas by 26.29 per cent on an average at consumer level with effect from September 1, 2015.
In August 2016, the commission held a series of public hearings on the proposals of natural gas utilities for raising the prices again by 94 per cent on an average.
After midnight past April 24, the government slashed the prices of Octane and Petrol by Tk 10 per litre and Diesel and Kerosene by Tk 3 per litre.
On March 31, the government also cut the price of furnace oil, mostly used by power plants, by 30 per cent from Tk 60 to Tk 42 a litre.
The government drew severe criticism as the reduction in fuel-oil prices left no impact on local market as well as on the cost of living as it did not lower the transport fares or electricity prices.
