Trade bodies air concern over fuel price spiral

Our Correspondent CHITTAGONG, November 12: The latest fuel price hike will have an adverse impact on the economy as it may push up prices of essential commodities and cost of transportation. The government Thursday increased the prices of all kinds of petroleum fuels by Tk 5 per litre with effect from Friday for the third time in only six months. Terming the move 'self-destructive for the pro-people government,' trade bodies in the port city and consumer rights group's Chittagong unit said petroleum prices are declining in the world market. President of Chittagong Chamber of Commerce and Industry Morshed Murad Ibrahim has said the government move will enhance the prices of goods further and the common people will be the "worst sufferers." In a statement, he said the chamber is "very much concerned" at the price hike of petroleum fuels as it will have a negative impact on the society. "This may cause further inflation on commodity prices apart from creating instability, enhance cost in all sectors and have adverse impact on overall economy of the country," the chamber statement said. Low income consumers will be the worst victims when the government is planning to spike prices of electricity and compressed natural gas (CNG) in December this year. "When fuel price in international market is declining, the price has been hiked in the country, which is impractical," the CCCI chief said. Vice president of Chittagong Metropolitan Chamber of Commerce and Industry Mahbub Chowdhury told the FE today that the government has increased the petroleum fuel prices following the advice of the IMF and a local think tank. "The prices of essentials increased following the hike in fuel prices last September and another hike in fuel cost will make the essential commodities costlier," he said. Trade body leaders called upon the government to give a second thought to the issue and withdraw the fuel price hike for the welfare of the people. In another statement, Chittagong unit of Consumers' Association of Bangladesh (CAB) alleged the government has enhanced the fuel price unilaterally by an executive order without consulting with the BERC (Bangladesh Energy Regulatory Commission). "The decision is the outcome of a small section of businessmen. The prices of fuel oil came down to US$ 100 per barrel in the international market a few days back, but its impact was not manifested in the local market," the CAB statement said. "Although the government has increased fuel oil prices in a bid to reduce subsidy on the sector and stop smuggling of the same, we consider it an excuse that will surely have an adverse impact on the prices of essential commodities," the statement added.