THE NEW Nation ran a report on Thursday which said that Bangladeshi consumers are paying the third highest fuel oil price in global standard only behind Congo and Senegal. The report quoting the findings of an international study made the disclosure but it failed to find a plausible reason why Bangladeshi consumers should pay the exorbitant price when the global market price for fuel oil has almost been halved down from the heat spell in the global market few years ago. Bangladesh Energy Regulatory Commission and the Energy Ministry are aware of the development. But it is not clearly known why they are not responding to greater public interest while charging us at some highest global rates when we have the lower per capita income here, least to compare with the Saudi or US nationals as the report indicated. Moreover; when the lower fuel oil price may accelerate the pace of economic growth by accelerating new investments to generate more jobs and income for the people, their inaction is not easily understood. The Finance Minister on several occasions mentioned that he would bring some downside adjustment in fuel oil prices, but there is nothing visible so far.
Noticeably, when the fuel oil prices were high the government always acted quickly to raise its prices on pressure from World Bank (WB) and IMF. But now when it has been halved, neither the WB nor the IMF is calling for a downward review. The government is also not showing interest about it. The country sustained losses on oil imports a couple of years ago when oil price in global market went over 100 dollars per barrel as against around $60 now. This time Bangladesh Petroleum Corporation (BPC) is earning handsome profits over the past losses. People tend to believe that it is time the government must reduce the fuel oil price. Needless to say, the Indian government has already reduced fuel oil price on several occasions over the past one year in line of the downward global market price.
There is a fact that the government is partially subsidizing the power sector, specially the rental and quick rental power plants now switching the profits from the fuel oil sale. But the simple argument may that people can’t be penalized both ways by raising power tariff as the government buys it at high cost from private producers also declining to reduce the fuel oil prices when its price is at halve in international market.
People don’t find any credible reason why the government would charge for fuel oil at highest global rates. The price chart must reflect the real global price and moreover as the low income country, the fuel oil price should equally be at the lower end, not at the upper end. People believe the government is charging the highest price as part of a mad drive to collect more revenue when corruption is eating everything away and money is flying out of the country.
