Voicing deep concern, Exporters Association of Bangladesh said the proposed price hike of gas and electricity will further increase their production cost and erode competitiveness.
"The decision came at a time when exporters are struggling to sustain and retain their competitiveness following the devaluation of euro in the EU and constant pressure from buyers to reduce products' prices," EAB President Abdus Salam Murshedy said in a statement issued on Saturday.
The cost of production will certainly go up as gas and electricity are the two main ingredients of manufacturing industry, he said, adding that export-oriented sectors will fail to compete with other countries like India, China, Vietnam and Indonesia.
"We will lose our competitiveness in the global market," he fears.
The export witnessed an 11.96 per cent negative growth in the first month of the current fiscal year, he said, adding that export target would not be achieved and the decision on price hike of power would badly affect the export earners.
The competing countries especially China, India, Vietnam, the Philippines, Cambodia, Indonesia and Malaysia have cut their fuel prices several times as oil prices decreased to $ 39 per barrel from $ 114 at present.
Moreover, their currencies have devalued against US dollar while the situation is just opposite in Bangladesh as local currency appreciated against the US dollar, the EAB chief said.
"As a result, exporters are facing tough competition," Mr Murshedy added.
Moreover, the cost of local power production did not increase due to downward trend in oil prices, he said and urged the government not to increase power price.
"The government should not increase the prices of gas and electricity rather it should reduce the rate to help the exporters achieve the export target and enhance their capability," the EAP president added.
In another statement, Bangladesh Auto Re-Rolling and Steel Mills Association also expressed concern over the price hike of gas and power.
Terming the decision about price hike 'illogical', it said despite frequent requests from local industries, gas and electricity prices have been raised again which will ruin local industries.
"All local industries will face devastation and local market will depend on imports," Sheikh Masadul Alam, chairman of the association, said in the statement.
The decision is contradictory for industrialisation as fuel price has been decreasing in the global market, he said, terming the hike a 'conspiracy' to ruin local industries.
He also requested the government to withdraw the decision on price hike for the sake of the country's local industries.
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