Fuel price hike adds to the sufferings of people

Bus owners on the Dhaka-Narayanganj route hiked fares immediately after the government increased the prices of diesel. One-way fare buses on this route have jumped to Tk 50 from Tk 36.

The government on Wednesday night increased fuel prices by Tk 15 per litre. While this increase is 23 per cent, the bus owners of Dhaka-Narayanganj route have increased the fare by 39 per cent.

The passengers were seen in heated arguments about the increase at bus counters yesterday morning. But the transport workers say they increased fare in keeping with fuel prices. The passengers had nothing much to do since all the bus companies hiked the fare simultaneously.

Lokman Ahmed, an office goer, helplessly asked how bus owners increased the fare at their will.

Meanwhile, the transport sector’s owners-workers decided to go on an indefinite strike from this morning demanding the increase of fare. But the transport sector leaders did not make any formal announcement regarding the strike. Rather the announcements were made from the district level. The owners said, they cannot operate with the existing fare after the fuel price hike.

Economists say that fuel is a ‘strategic product’. Fuel price hike directly affects people’s transport cost which results to increase in production cost of agricultural goods and other products. The prices of every product increase subsequently. So, prices of everything may increase a bit in the coming days.

Along with diesel, the authorities have also hiked the prices of kerosene by Tk 15 per litre on Wednesday at midnight.

Furnace oil prices were also increased by Tk 3 per litre. The increases in diesel and furnace oil will shoot up the electricity production cost. Electricity prices would go up if the government does not provide subsidy. The price of private operators’ liquefied petroleum gas (LPG) has been increased by Tk 54 per 12-kg container.

These increases come at a time when prices of essential commodities have already skyrocketed and the income of people decreased during coronavirus. A survey by PPRC and BIGD on Thursday indicated that the coronavirus situation has rendered 32.4 million new poor in the country.

Centre for Policy Dialogue’s (CPD) distinguished fellow Mostafizur Rahman told Prothom Alo that the fuel price hike affects price level. As a result, the purchasing capacity and living standard of people with a static amount of income may decrease.

He said the main problem is transport fare is increased much more in comparison with the fuel price increase.

Mostafizur thinks that the price could have been increased at a lower rate by waiving the tariff of fuel. The effect can be minimized by waiving tariffs on other essential commodities and increasing subsidies for the farmers.

Bangladesh Petroleum Corporation (BPC) sources said the annual demand for fuel is around 6.5 million tonnes. Of the amount, diesel’s demand is 5 million tonnes, of which 4 million tonnes are imported. 63 per cent of diesel is used in the transport sector while 16 per cent is used in irrigation. 26 per cent of power plants are furnace oil-fired while 6 per cent are diesel-run. These power plants are in regular use due to gas shortages in the country.

The price hike of diesel and kerosene were enforced from Wednesday midnight while the announcement of a hike in furnace oil came in the afternoon.

BPC’s director (operations and planning) Syed Mehdi Hasan told Prothom Alo that prices of fuel have increased in the international market. The authorities decided to increase the fuel price since the BPC has been incurring losses for the last five months.

Also, the price of private operators’ liquefied petroleum gas (LPG) has been increased by Tk 54 per 12-kg container. The new price has been implemented yesterday.

BNP, Jatiya Party, CPB and other political parties denounced the government’s decision to increase the fuel price.

Organisations of transport owners and workers held meetings among themselves after the increase of fuel price. The meetings decided to enforce strikes until the fare is not adjusted with the increased fuel price. No buses were seen plying on Dhaka streets since Friday morning.

Bangladesh Sarak Paribahan Malik Samity’s secretary general Khondokar Enayet Ullah told Prothom Alo that they will incur losses if buses are run on existing fare after the diesel price increase. The bus owner associations of different districts have decided not to operate buses under these circumstances.

Truck, Covered Van, Tank Lorry, Prime Mover owners-workers association's convener Rustam Ali Khan told Prothom Alo that fuel cost is Tk 8,000-10,000 for transporting goods from Dhaka to Chattogram. This will now increase by Tk 2000-2200.

Sources from the transport sector said the strike would be called off if they are assured of an adjustment of fares. They will hold a meeting with BRTA soon over the matter.

Bangladesh Sarak Paribahan Malik Samity demanded an increase of fare through a letter to Bangladesh Road Transport Authority’s (BRTA) chairman. In response, BRTA has called a meeting on Sunday morning.

BRTA chairman Nur Mohammad Majumder told Prothom Alo that the matter would be discussed at Sunday’s meeting. So, there is no point enforcing the strike.

Some organisations also asked transport sector authorities to call off strike considering the sufferings of university admission seekers, job seekers and general people.

Energy division sources said fuel prices were increased for the last time in 2013. The authorities, however, lowered the prices a bit in 2016.

Sources said BPC profited Tk 400 billion in the last seven years as they did not decrease the fuel prices in the country in line with decreased prices in the international market. It is not acceptable to increase diesel-kerosene prices by Tk 15 per litre at one go after incurring losses for five months.

Consumers Association of Bangladesh’s (CAB) energy advisor M Shamsul Alam told Prothom Alo that authorities in the country did not lower the price when the fuel price was low in the international market. Why should they increase the price now?