HC questions legality of fuel price hike
Respondents get 4 weeks to reply
FE REPORT | Wednesday, 17 August 2022
The High Court (HC) has questioned the latest government decision on a record hike in the prices of diesel, kerosene, octane and petrol.
It issued a rule on Tuesday, asking the government bodies concerned to explain within four weeks as to why the power ministry's fuel price-hike notification should not be declared illegal.
It also asked the respondents to explain as to why they should not be directed to cancel or withdraw the notification.
The HC bench of Justice Md Mozibur Rahman Miah and Justice Kazi Md Ejarul Haque Akondo passed the order after hearing a writ petition that challenged the legality of the hike decision.
Power and energy secretary, Bangladesh Energy Regulatory Commission (BERC) chairman and others have been asked to comply with the rule within the deadline.
The government on August 05 hiked fuel prices by up to 51.7 per cent, the highest in the country's history, adding to the plight of the public who are already battered by the rising cost of living.
As the new prices took effect at 12:00 am on August 06, a litre of octane now costs Tk 135, which is 51.7 per cent higher than the previous rate of Tk 89.
Similarly, petrol per litre now costs Tk 130, a rise of Tk 44 or 51.1 per cent, according to a press release from power, energy and mineral resources ministry.
On the other hand, the price of each litre of diesel and kerosene has reached Tk 114 from Tk 80.
Supreme Court lawyer Dr Eunus Ali Akond filed the writ on August 08, challenging the legality of the government's decision on the fuel price hike.
It sought a stay order from the court upon the effectiveness of the fuel tariff hike notification.
Advocate Akond and barrister Jyotirmoy Barua appeared in the hearing in support of the writ. Deputy attorney general Arabindo Kumar Roy represented the state.
"Price hike by the ministry's notification has violated the provisions of the Bangladesh Energy Regulatory Commission (BERC) Act," Mr Akond told the court.
"The law has provided a provision of holding a public hearing before rescheduling fuel prices and the prices will be determined by the BERC."
"There was no public hearing in fixing the new prices and the prices were set by the government," he uttered.
Barrister Barua said, "There is no scope to hike fuel prices without holding a public hearing. The ministry has no jurisdiction to fix fuel prices."
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