Adjust fuel prices key to stop smuggling
The government had to adjust fuel prices to prevent subsidised fuel purchased with foreign currency from being smuggled to neighbouring countries and to continue its social safety-net programmes, State Minister for Power, Energy and Mineral Resources Anindya Islam Amit said on Tuesday.
He made the remarks at a press conference at the Secretariat.
Referring to fuel prices in neighbouring and other countries, the state minister said diesel costs Tk134.76 per litre in Kolkata, India, Tk164.83 in Myanmar, Tk161.24 in Nepal, Tk179.42 in Sri Lanka, Tk151.22 in Thailand, Tk137 in Vietnam, Tk140 in the Maldives, Tk168.53 in the Philippines, Tk185.48 in Pakistan and Tk144.79 in Dubai, UAE.
“If the automatic pricing mechanism in the international market were fully implemented, diesel would have to be priced at Tk205 per litre.
But considering the financial burden on ordinary people, the public transport sector and farmers dependent on irrigation, the government has kept the price much lower and at a tolerable level by providing substantial subsidies,” he said.
“Since fuel prices in Bangladesh were at the lowest level, there was a significant risk of fuel purchased with the hard-earned foreign currency of expatriate Bangladeshis being smuggled to neighbouring countries. In this situation, the adjustment became necessary to curb smuggling and continue the government’s social safety-net programmes,” Amit said.
On the ongoing international and Middle East crisis, he said 70% of Bangladesh’s imported fuel and 20% of global fuel supplies pass through the Strait of Hormuz.
“The current Middle East crisis has created an unprecedented situation, which is different and more complex than the Covid-19 pandemic or the Russia-Ukraine war,” he said.
Highlighting Bangladesh Petroleum Corporation’s financial capacity, Amit said the BPC had been able to absorb losses without increasing fuel prices because excess funds generated from previous profits had been kept in the government treasury.
He said the BPC had so far incurred losses of Tk22,875 crore while trying to shield consumers from fluctuations in international prices.
“Although prices in the international market change every moment, we tried to protect the people by not adjusting prices immediately,” he said.
On the impact of the latest price adjustment, Amit said, “As a political worker, I understand the hardship this decision will cause people. We had to take this difficult decision because there was no alternative. I sincerely apologise to the people for this.”
He also said the government, along with the ministries of Road Transport and Bridges and Shipping, was working to prevent unscrupulous groups from taking advantage of the price increase by charging excessive transport fares or creating artificial shortages.
“Strict market monitoring has also been strengthened so that the impact on ordinary people can be kept to a minimum,” he said.
Regarding the International Monetary Fund loan and its conditions, Amit said the loan had not been taken during the current democratic government.
“The loan was taken in the past, not during the current democratic government. If there is an obligation to comply with the loan conditions, we will examine the matter and take the necessary steps,” he said.
The government adjusted retail fuel prices on Sunday night in line with international market prices for September.
Under the new prices, diesel is Tk135 per litre, octane Tk165, petrol Tk160 and kerosene Tk155.
This version keeps the main figures and all the minister’s substantive statements while removing repetition and making the lead more direct.
