10pc cut in fuel cost of ministries, divisions

Shakhawat HossainbrThe government Sunday cut fuel bill of its ministries and divisions by ten per cent and made gas-conversion of newly procured cars mandatory in the wake of ballooning cost of the country's oil import. brThe finance ministry announced the decision in a notification, saying the move would increase energy efficiency and was part of austerity measures that would keep public expenses under tight leash. brOfficials said the order would help save the government at least Tk3.50 billion from the government's annual fuel expenditure that hit Tk 35.00 billion in the 2007-08 fiscal.brThe government said it would not allow the ministries or its divisions and state-owned enterprises to use newly bought cars without converting them into Compressed Natural Gas (CNG)-fired ones. brWithout CNG run facility no new cars would be allowed to ply, said the notification.brA senior finance ministry official said the latest austerity move was taken in the backdrop of a massive spike in oil import bill and amid sky-rocketing crude prices in the international market. brThe country spent more than US$ 3.0 billion to import 3.5 million tonnes of crude and refined oil last year--- a year-on-year increase of around one billion dollars despite the consumption was fractionally lower than the previous year. brGlobal oil prices more than doubled since January last year due to tight supply and political instability across the globe. brCrude prices, however, plummeted 20 per cent in the global market since it hit a record $147 per barrel on July 11 this year.brState-owned oil importer, Bangladesh Petroleum Corporation (BPC) said in spite of the recent fall, import cost still remained at least 20-30 per cent higher than the government administered prices of petroleum products in the domestic market. brBallooning oil import bill has become a major headache for the government, said the finance ministry official.brIt has already put a big pressure on the country's balance of payment and causing a huge drainage of precious fund that would have otherwise been spent on health, education and infrastructure, said the official.brAn energy ministry official said fuel bill of government-owned cars and buses rose more than fifty per cent to Tk 35.00 billion in the last fiscal year. brThe bill rose sharply because quite a few government-owned cars have yet to be converted into gas-fired ones, said the finance ministry official.brWe hope after the order gas conversion would gather momentum. From now on everyone would be cautious of using government cars indiscriminately, he said.brBoth the ministries and the Cabinet division could not give the number of cars and buses now being used by the government.