FAILING oil prices though influencing the world’s economy positively, but with ‘oil so much cheaper’, the national economy could have marked a boost if the policy planners were committed to resort the opportunity considering people’s interest. But when the government business is to make business for some of its loyal opportunists, then utilizing benefits from the cheaper oil slips away ignoring public cost. The New Nation on Tuesday reported that the falling oil prices have become a great relief for the government but it has not been sweeter for the consumers as the fuel prices have not declined in the local market.
As per the report, the government has earmarked Tk 2,400 crore budgetary allocations in the current fiscal to meet up fuel subsidy. Fortunately with the oil falling, the government will now would not need to spend any money on this account. Therefore, the cost of fuel subsidies will decline this fiscal, which may help the government with a lower subsidy bill to contain fiscal deficit. But what is surprising is when the government has adequate choice of maximizing benefits with cheaper crude, ruling high ups are unwilling to take decisions to lower the fuel prices in line with the slashed global prices. This has been done only to make quick bucks for the quick power producers depriving the consumers who are paying for energy consumption like electricity and gas.
World oil prices have been fairly stable, at around $ 110 (£68) a barrel, since 2010. It has been almost halved since June this year. Brent crude oil has fallen below $ 60 a barrel for the first time since July 2009 and US crude is now below $ 55 a barrel for weaker demand and concern of a global oil glut. Bangladesh Petroleum Corporation (BPC) imports around 5 million tonnes (1 barrel is equal to 0.13 tonne) of fuel oil annually, including 1.3 million tonnes of crude petroleum. Thus, state-run BPC is going to make profit this fiscal for the first time in 13 years taking the advance of lower global oil price depreciation. That is the BPC, or the government, has gained over the deal.
But the big unanswerable question is – why the ordinary people cannot reap the least benefit from the recently revised oil price tag, or why the economy cannot enjoy the benefit of market interplay as per rules of trade? The government opted for a policy against the interest of the common people and not based on the primary rules of the market mechanism just for maximizing profit from energy businesses. Sinking crude costs must be used to spell rising equal prosperity to the whole nation. It should not be a luxury to some, rather all must be accountable.
