Need for reconsidering fuel-price hike

The recent fuel-price surge is unprecedented. It is the highest in 20 years, and came to us as a sudden shock. There was a fear that fuel oil prices could be increased. But the increase is atrocious. We already face a costly living as the prices of goods and services are going up with every passing day. Amid this, the prices of diesel and kerosene have been increased by 42.5 per cent to Tk 113 a litre from Tk 80. The petrol price has been increased by 51.16 per cent to Tk 130 a litre from Tk 86; and, the price of octane has been increased by 51.68 per cent to Tk 135 a litre from Tk 89. Most importantly, the hike came at a time when fuel prices are reportedly falling in the global market.

The increase in fuel oil prices will, no doubt, badly impact the whole economy of our country. No section of our society will be spared from its consequences. Business entities, particularly small and medium enterprises, will suffer when their production and transportation costs go up sharply. The surge, moreover, will raise Bangladesh's current inflation rate, which was 7.56 per cent in June.

Common people are already finding it extremely difficult to make ends meet with the high prices of almost all daily essentials. The escalation of fuel prices along with the already high prices of utilities like electricity, water and gas are bound to have a devastating effect on the prices of food and non-food items. This will be too much to bear for fixed-income groups. We urge the government to reconsider the hike and explore alternatives to raising fuel prices and save people from more woes.

Al Amin Hossain,

Student of University of Chittagong, Chattogram,

alaminfinance1998@gmail.com