Apparel makers urge diesel price cut

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) urged the government to readjust the local diesel price, citing the decline in price of the fuel oil in the international market.
It also said that the country's export-oriented readymade garment (RMG) industry and other sectors would be benefitted from the price re-fixation of diesel, which plays an important role in production activities.
The trade body made the demand in a letter, signed by its president Faruque Hassan, to the prime minister on October 02. The FE has obtained a copy of the letter.
Mr Hassan in the letter said they (factory owners) had to use diesel-run generators to keep continuing production activities at their units during the electricity crisis and in the event of load shedding.
"As a result, the demand for diesel has gone up," he said.
Last year, the price of diesel was Tk 80 per litre, which rose to Tk 109 this year, said Mr Hassan.
The international price of diesel has decreased, so the local rate needs to be readjusted to help the sector sustain its export growth and create new employment, the BGMEA president said, requesting re-fixation of the fuel price in line with the global rate.
Bangladesh fetched US$42.61 billion from RMG export in the last fiscal year - this was only $12.49 billion in the fiscal year of 2009-10.
The BGMEA also sets a $100billion export earnings target by 2030.
The rising inflation due to the Russia-Ukraine war has created challenges at a time when the industry is yet to fully recover from Covid fallout.
Citing the government's stimulus packages that helped the industry bounce back, the BGMEA president demanded the government's policy support in supplying diesel to the local market by adjusting its price in line with the international market.

Munni_fe@yahoo.com