Consumers to bear some burdens of fuel price hike: Finance minister

Finance minister AHM Mustafa Kamal has said the mass people have to bear the burden of increased fuel price to some extent as the government needs money to finance development projects, reports UNB.

“The consumers have to share some of the burden, while the rest is borne by the government. The government has to earn money from the taxes… This is an easy equation,” he said while briefing reporters after presiding over a meeting of the cabinet committee on public purchase on Wednesday.

“If the price is not hiked, how could the government earn? The government has to spend money for development projects,” he said.

He, however, said he will brief on the fuel price hike after the next week’s meeting of the cabinet body.

The government hiked the price of diesel and kerosene by 23 per cent and subsequently bus fare was raised by 28 per cent.

The finance minister said the power and energy ministry’s decision to increase the petroleum fuel price was fully justified.

“The price was lowered in the local market when the fuel price was lower in the international market… Now it has gone up substantially and local prices are also up,” he said.

He noted that the power and energy ministry has acted on its own as every ministry takes its decision independently except a few which needs to be discussed at an inter-ministerial meeting.