Corporate interest to benefit from oil price hike

A sharp price hike of diesel and kerosene has come as a big shock to the people. The government has increased the per liter cost by Tk 15 precipitating angry response from the transport sector. Buses, tracks and covered vans were off streets in the city as well as the rest of the country causing commuters to suffer and seriously affecting business. Small vans were off the roads. Launches didn’t ply on the water routes. We are afraid a big crisis is looming ahead unless the government quickly responds to end the crisis. Office goers will be in trouble, garment workers on Saturday joined transport workers to blockade roads. Meanwhile, bus and truck owners’ meeting with the home minister on Friday failed for lack of progress. They have demanded of the government either to withdraw the higher oil prices or allow them to increase transport fare.
We don’t understand why the government made the unilateral decision suddenly keeping the nation and big stakeholders unaware. These are crucial matters and the government should have held prior discussion with leaders of the transport sector to avoid misunderstanding. The government may have been right when it said price hike of petroleum products in the international market has forced it to raise the price. But it is wrong to take the decision alone. Now the people are in trouble and the entire economy is poised to destabilise. Vegetables prices will go up as transport cost will be up. The poor will be hard hit when inflation goes up. Movement of merchandise will be costlier to impact the entire business supply chain.
Similarly the rise in LPG price is going to hit the power sector and higher cost of power will seriously impact export competitiveness. The question is how the RMG sector or other exporters will face it. Economists have rightly said the government made enough profit when oil prices were lower in the international market. It could share a part of the profit to subsidise high costs at this moment. They are also not wrong when they say the decision has been made to protect the interest of petroleum importers and make good losses that Bangladesh Petroleum Corporation incurs from huge corruption. We are afraid that common people will take the brunt of the high prices while big business and corporate interests will earn benefits.