THE Finance Minister again bypassed his assurance to reduce the price of fuel oil ignoring the call by economists, business leaders and users who say such reduction would reduce cost of doing business and accelerate growth. It is natural that when the cost of oil has phenomenally slammed in the global market to all time low there is no justification to continue the higher price. Many fear that the Finance Minister is almost mocking with the nation often saying that he would reduce the price and then skipping over the public assurances.
The Cabinet on Monday was scheduled to take a decision on the matter but to the surprise of many it did not. Meanwhile, oil is selling at US$ 35 now at global spot markets per barrel compared to 120 dollar earlier. The fact is that the government was always quick to raise the oil price when it surged in the global market. It blamed the World Bank and IMF for upward adjusting the domestic selling price. But now the government is defying their prescription to downward adjust it to the benefit of common users.
We have seen that the government has so far tried to justify the higher price saying it was essential to recover the previous losses incurred by Bangladesh Petroleum Corporation (BPC), which imports fuel oil, and distributes through state-owned marketing companies. But BPC statistics now show its losses from Tk 11371.31 crore in 2011-12 has slowed down over the past few years to turn it into profiteering. It made a profit of Tk 5268 crore in 2014-15 leaving no scope to justify the continuation of exorbitant fuel price.
We wonder how the Finance Minister would shun experts opinion who said a 10 percent reduction in fuel price would spur GDP growth by 0.3 percent, export by 0.4 percent and household consumption by 0.6 percent. More reduction will bring more benefits to the economy. It will see fresh investment to lead to new industrial and business expansion and related income generation activities. Banks will overcome sluggish businesses as more borrowers will feel encouraged by the upward cycle in the economy.
But many doubt that the Finance Minister may be bent upon continuing the higher fuel price as long as possible to save money to pay the new pay scale to bureaucrats. He wants to reduce pressure of revenue shortfall estimated to be Tk 40,000 this year when the new pay scale will need huge money to keep the administrative cadre officers happy. But in our view he can’t continue to exploit the people this way.
People believe that the Finance Minister must understand fair business logic and market practice that people deserve lower fuel price now by their own right. He can’t ignore it any more.
