Higher fuel costs drive daily hardship

People had high hopes that the newly elected government would take swift steps to ease public hardship during a fragile economic transition.

However, political changes and unexpected global conflicts have deepened the crisis, leaving citizens to face even greater financial strain.

Within two months of taking office, the BNP-led government increased gas and fuel prices, while LPG prices rose twice this month by nearly Tk 50 per kg, pushing the price of a 12 kg cylinder to around Tk 1,940.

Higher fuel costs have also increased transport and production expenses, adding further pressure on the prices of daily essentials.

Amir Hossain, a resident of Jatrabari who earns Tk 45,000 a month from a private-sector job, said most of his income is spent on rent, his children’s education, healthcare, transport, and supporting his elderly parents.

Only around Tk 5,000 to Tk 7,000 remains for household groceries.
While he previously managed with difficulty, the sharp rise in prices over the past few months has made it increasingly difficult to cope.

His family has reduced consumption of items such as beef and fruits, stopped leisure outings, and he now depends on monthly borrowing to meet household expenses as the cost of almost every daily necessity continues to rise.

Amir Hossain told The New Nation that prices of essentials, from vegetables to clothing and medicine, have increased significantly.

His monthly grocery expenses have risen from Tk 5,000–7,000 to Tk 9,000–10,000, with recent increases in the prices of eggs, sugar, aubergine, pointed gourd, chicken, and fish making the burden increasingly difficult to bear.

This is not only Amir Hossain’s story; it reflects the reality faced by many middle-class families across the country.

Visits to markets in Jatrabari, Rampura, Mohammadpur Krishi Market, and Town Hall found that prices of rice, atta, maida, and soybean oil have increased over the past week.

Over the last one to two months, the prices of coarse and medium rice, detergents, soap, fish, and beef have also risen.

Former World Bank Dhaka office lead economist Dr Zahid Hussain told The New Nation that, amid rising global prices, the government should have handled the situation more cautiously by reducing unnecessary expenditure, strengthening strict market monitoring, and taking stronger action against black market activities.

He said such measures could at least provide some relief to people already struggling under the current economic pressure.

According to the Department of Agricultural Marketing, prices of Sonali chicken have increased by 45 per cent year-on-year, while broiler chicken prices have risen by 7 per cent over the same period.

The department also reported that, of 15 monitored vegetables, the prices of nine have increased compared with last year, while four have declined.

The sharpest increases were seen in tomatoes, pumpkins, and bitter gourds, which were selling yesterday at Tk 50–60, Tk 40–50, and Tk 80–100 per kg respectively.

Traders said prices have remained high since the 2022 Russia–Ukraine war, while the recent Middle East fuel crisis has added further pressure, worsening the burden on consumers.

Retailers and wholesalers identified three main reasons behind the rise in essential goods prices: higher global costs of raw materials, supply shortages, and recent fuel price increases.

A two-month shortage of bottled soybean oil has added to the pressure, with companies reportedly increasing dealer prices despite no official approval, passing the additional cost on to consumers.

Traders said they are being forced to purchase at higher rates, making it difficult to sell at lower prices.

As inflation continues, ordinary people are bearing the brunt, with incomes failing to keep pace. Government data show inflation has remained around 8.5 to 9 per cent for the past three years.

A recent World Bank report said Bangladesh has remained in the “red” zone for food inflation risk for nearly three years, indicating persistent food security concerns that could worsen further due to the Middle East crisis.

Consumers Association of Bangladesh (CAB) President AHM Shafiquzzaman said simultaneous price increases across multiple goods have placed strong pressure on consumers, particularly low-income groups.

He added that rising fuel costs are increasing overall living expenses, including transport costs, while some traders are taking advantage of the situation to raise prices even further.