Bangladesh sought global actions especially by rich countries to contain the skyrocketing petroleum prices in the international market as it eats up major portion of the development funds in the developing and least developed countries (LDCs) countries, officials said.
"It is a 'global crisis' and hence global leaders especially the rich countries including those of oil-producing ones and more importantly the United Nations should come forward to tackle the issue seriously," Chief Adviser's special assistant professor M Tamim told FE a day after the government raised the fuel prices domestically.
He said an urgent action is needed to ensure survival of the poor countries like Bangladesh against the escalating oil prices in the international market.
Echoing similar view energy secretary Mohammad Mohsin said the developing and LDCs should also sit together and adopt measures to face the increasing petroleum prices in the international market.
Petroleum prices in the international market reached record high at $143.67 Tuesday, which is 138.33 per cent higher than that of the same on April 2, 2007 when Bangladesh increased the petroleum prices domestically before the latest hike of June 30, 2008.
In the latest hike Bangladesh raised petroleum prices by 33.84 per cent to 50 per cent with effect from Tuesday to offset the impact of overheated international oil market on the domestic economy.
"This was an unpleasant decision, but we had no other option to reduce the loss of state-owned Bangladesh Petroleum Corporation (BPC) as the oil prices in the international market have been skyrocketing," he said.
The soaring oil price in the international market has already emerged as one of the biggest concern of the countries like Bangladesh as professor M Tamim said despite the latest hike the BPC will have to count losses worth Tk 100 billion annually if the current oil price in the international market remains stable at US$142 per barrel.
Regarding rising oil prices energy secretary said: "Time has come for a retreat by the developing and LDCs to sit and take measures to check the soaring petroleum prices in the international markets."
Forums of the developing and LDCs should hold discussions with Organisation of Petroleum Exporting Countries (OPEC) to cool the overheated petroleum prices, he observed.
Mr Mohsin said oil import-dependent countries like Bangladesh are facing serious problem to meet fuel import bills and the government's capacity to finance the increasing amount is diminishing gradually, he observed.
Oil-based industries including oil-run power plants and industries are bearing the brunt of increasing fuel prices in the international market.
Sources said oil prices in the international market was hovering around $25 a barrel before 2003.
During 2004 the price rose above $40. A series of events led the price to exceed $60 by August 11, 2005, briefly exceeding $75 in the middle of 2006, falling back to $60 per barrel by the early 2007 then rising steeply to $92 per barrel by October 2007 and $99.29 per barrel in December 2007.
Throughout the first half of 2008, oil regularly reached record high prices. On February 29, 2008, oil prices peaked at $103.05 per barrel and reached $110.20 on March 12, 2008.
Meanwhile, another FE report adds: Noted economist Wahiduddin Mahmud said Tuesday the government should implement effectively its social safety net programmes pledged in the national budget to provide the poor a cushion against the fresh price hike of fuel.
"The government had no other alternative but to raise the prices of fuel. Now, it has to implement social safety net programmes to provide relief to the poor as pledged in the national budget," he said.
He was addressing as chief guest a programme organised by Shamunnay, a local research organisation, at the city's CIRDAP Auditorium Tuesday.
"We should take appropriate steps for protecting the interest of the poor people, especially the farmers, readymade garment workers and rickshawpullers," Dr Wahid added.
He, however, suggested for formation of two separate taskforces immediately aiming at reducing the impact of the fuel price hike.
He said one taskforce might be formed for advocating on how to raise food production and ensure agricultural inputs and the other for regular monitoring of development and implementation of social safety net programmes.
Dr Wahid said the government has a limitation in its political economic management adding: "The government is now concentrating on political affairs and not the political economy."
"I think the government should now indulge in more political economy as the national economy is getting volatile mainly due to sharp price hike of fuel in international market," he added.
He said there is no policy on fuel conservation to face the overheated international fuel market.
"Even the US and India has launched campaign calling people to minimise the use of fuel under the present context," he added.
He said in many developed nations people have been discouraged to buy large motor vehicles to face the challenge of fuel price hike. "We neither have such directive nor do we have plan to save fuel at weekends".
AL, allies protest energy
price hike
The Awami League and other political parties Tuesday urged the government to reverse the decision on an energy price hike, reports bdnews24.com.
The AL, Jatiya Samajtantrik Dal (Inu) and Samyabadi Dal protested the decision of hiking energy prices by 33-37 per cent.
Describing the decision as suicidal, acting AL general secretary Syed Ashraful Islam said: 'Fuel prices must be reverted to their previous levels because the decision will increase transport costs and the prices of commodities. All will push the country's already fragile economy into a worse situation.'
Syed Jafar Sajjad, general secretary of JSD, said: 'The decision of increasing fuel prices will only add to people's miseries. Subsidies must continue as before.'
Calling it 'an anti-people decision', Samyabadi Dal general secretary Dilip Barua said: 'The government has increased fuel prices just to make the World Bank and the IMF, its foreign masters, happy.'
Dilip Barua and Syed Jafar Sajjad attended separate meetings with the AL at acting AL president Zillur Rahman's Gulshan home.
