Fuel, electricity price hike unlikely to significantly affect market: Adviser Zahed

Prime Minister’s Information Adviser Dr Zahed Ur Rahman on Saturday expressed hope that the recent hike in electricity and fuel prices will not have a significant impact on the market.

“ We do  not think that this will create a major impact on the market,” he said at an emergency press briefing on energy and power held at the Press Information Department (PID) conference room in Secretariat.

Information and Broadcasting Minister Zahir Uddin Swapon was also present at the event.

Responding to a question on the timing of the price hike ahead of the budget session, the adviser said adjustments in fuel and electricity prices are inevitable at some point.

The prices of essentials particularly vegetables and fresh produce often rise around the budget period, although the current market trends showed some stability compared to previous periods, he said.

“There is a trend and we are now seeing signs of reversal,” he said adding that the government is also under pressure due to rising subsidy costs.

Increased subsidy spending limits the government’s ability to invest in development projects, healthcare, education and social safety programmes, he added.

Citing the ongoing initiatives such as farmer cards and family cards, the adviser said the government must ensure funding for such social protection measures.

Acknowledging that price increases are undesirable, he said the Ministry of Commerce would remain vigilant to prevent unjustified hikes

The impact of the recent price adjustment would be limited as vulnerable groups are being protected, he said adding “We have not increased electricity or fuel prices for vulnerable people and many of them will continue to receive government support and allowances.”

A significant portion of low-income families would benefit from family card programmes in the upcoming budget, alongside continued support through other safety net initiatives such as TCB programmes, he added.

He also said the government would continue to take action against any unjustified price hikes in the market.