Impact of Sept fuel price to ripple kitchen mkts

The impact of last month’s Tk 20-per-litre hike has been continuing to ripple through the kitchen markets in the capital with the traders reporting higher transport costs and the consumers facing increased prices for vegetables, meat and eggs though the government has kept fuel prices unchanged for October.

Meanwhile, the government on Wednesday night announced that fuel prices would remain unchanged in October, nearly 10 days after it raised the prices of diesel, octane, petrol and kerosene by Tk 20 per litre each.

Following the September 20 hike, diesel now sells for Tk 135 per litre from Tk 115, while octane for Tk 165 from Tk 145, petrol for Tk 160 from Tk 140 and kerosene Tk 155 per litre from Tk 135.

Traders in the city’s Shantinagar, Badda, Rampura and Malibagh markets said the higher fuel prices increased transport costs, which were being passed on to consumers.

One vegetable trader in Badda, said truck and pickup fares have increased by Tk 2,000-5,000 per trip since the fuel price hike.

“Costs have risen both for bringing vegetables to the wholesale market and for carrying them from there to the retail markets,” he said.

One vegetable seller at Rampura kitchen market, said the prices of vegetables have risen by at least Tk 20 per kg over the past 10 days.

Round brinjal is selling at Tk 150-180 per kg, depending on quality, compared to Tk 80-120 before the fuel price hike. Yardlong beans now cost Tk 120 per kg, up from Tk 80, while ridge gourd, bitter gourd and pointed gourd are selling at Tk 80-90, compared to Tk 50-60 previously.

Meat prices have also increased. Beef is now selling at Tk 850 per kg at Madhya Badda kitchen market, up from Tk 800 a few days ago.

“Most of our cattle heads come from Kushtia, Jhenaidah, Jamalpur and Sirajganj. Truck fares from those areas have gone up by Tk 5,000-6,000 per trip. We were forced to raise the price of beef,” said Saddam, a meat trader at the market.

Egg prices have also risen, with a dozen now selling at Tk 160-170, compared to Tk 120 in the first week of September. Traders attributed the increase mainly to higher transport costs.

Traders fear that prices could rise further if transport costs remain high, while consumers say the sudden increase has disrupted their household budgets.

A private banker said, “On one hand, the salaries of government employees have been doubled under the new pay scale; on the other, fuel prices have been raised overnight. The entire burden has fallen on those who are not in government jobs.”

A kindergarten school teacher, said the fuel price hike increased costs across different areas of daily life, not just in kitchen markets. She said the pay rise for government employees, without a corresponding increase for private-sector workers, has created a serious disparity.

Agronomist and former Jahangirnagar University Vice-Chancellor Abdul Bayes said the full impact of the fuel price hike has yet to be felt.

“Higher diesel prices will raise irrigation costs for farmers by Tk 10,000-20,000 per hectare. That will push up the prices of rice, pulses, wheat, everything,” he said.

Bayes warned that the increase in all fuel prices, coupled with an existing fertiliser shortage, could put further pressure on food prices.

The Consumers Association of Bangladesh (CAB) said some traders were exploiting the fuel price hike to pass unjustified costs on to consumers.

CAB President AHM Shafiquzzaman said the situation will deteriorate unless market monitoring is strengthened.

“We need to assess how much prices have actually gone up, how much of it is justified, and how much is being passed on to the market. There is no alternative to tightening monitoring,” he said.

Energy experts said the government was raising fuel prices under the existing pricing rules without adequately considering their impact on consumers, which could make the market more volatile.

M Shamsul Alam, energy adviser to CAB and dean of the Faculty of Engineering at Daffodil International University, said the government must first address weaknesses in its energy policy.

“If prices are raised abruptly without a sound energy policy, consumers suffer the negative impact, but when prices are reduced, they do not get the benefit,” he said.