Dual pressure from fuel cost and inflation: how to manage finances

Rising fuel prices are increasing transportation costs, and this effect is already pushing up the prices of essential goods.

There is also concern that prices may rise further in the near future. It is therefore crucial to take control of expenses from now on.

When fuel costs rise, the cost of transporting goods increases. Consequently, the cost of goods and services also goes up, which directly affects market prices.

According to the Bangladesh Bureau of Statistics (BBS), overall inflation in March stood at 8.71 per cent, with food inflation being even higher.

Experts suggest that, due to global fuel and supply conditions, price pressures are unlikely to ease quickly. Under such circumstances, financial strain is expected to intensify in the coming days.

Therefore, careful budgeting may be the most effective strategy for middle-income and limited-income households to sustain themselves.

Some practical strategies to manage expenses are outlined below:

Keep separate accounts for food, fuel, and transportation. Identify areas where spending is higher and make necessary adjustments.

Reduce unnecessary travel. Use public transport where possible. Combining office and market errands can also help lower costs.

Limit eating out (restaurants, fast food, etc.). Plan weekly grocery shopping to minimise waste.

Control the use of gas and electricity. Reduce cooking time where possible and use energy-efficient appliances. This approach can be highly effective.

Buy non-perishable items in advance if necessary. However, avoid excessive stockpiling—purchase according to actual needs. Shopping weekly or monthly in bulk can help reduce costs.

Limit purchases made through credit cards or instalments. Rising interest rates will increase financial pressure.

In addition to cutting expenses, increasing income is essential. Consider part-time work or utilise skills to earn extra income.

Set aside savings, even if small, to manage unexpected expenses.