[Valid RSS]
January 28, 2023, 3:50 am
GIZ Bangladesh’s training held on SDG localisation in Khulna ছোটদের সহজ প্রোগ্রামিং শিক্ষায় প্রকাশিত হল বাংলা স্ক্র্যাচ বই Ditching Russian gas no way to reach climate goals : Putin চট্টগ্রামে নিরাপদ খাদ্য বিষয়ে প্রচারনা কর্মসূচি সমাপ্ত Samsung brings month-long smartphone campaign On September 6–7, Vladimir Putin will make working trip to Vladivostok Two Russian embassy workers killed in ‘suicide bombing’ Shocked & devastated by the horrific attacks : Justin Trudeau  SSC, equivalent exams begin Sept 15: Dipu Moni Ten killed in Canadian stabbing spree Russia wants UN to pressure US : media Daraz Bangladesh Anniversary Campaign – Now LIVE! realme offers upto BDT 3400 off on occasion of Daraz’s 8th anniversary General Pharmaceuticals employees will receive insurance from MetLife চট্টগ্রামের কলেজিয়েট স্কুলে নিরাপদ খাদ্য বিষয়ে প্রচারনা কর্মসূচি শুরু Bangladesh a secular country, immediate action is taken whenever minorities are attacked: PM  Two more mortar shells from Myanmar land in Bangladesh OPPO launches killer device A57 in 15-20K price range ShareTrip and Grameenphone join hands to offer exciting travel privileges ড্যাপ ২০২২-২০৩৫ এর পরিপূর্ণ বাস্তবায়নের দাবী বিআইপির

Reinstate earlier prices of diesel and kerosene at an immediate basis: CPD

Bangladesh Beyond
  • Updated on Wednesday, November 10, 2021
  • 191 Impressed

Reinstate earlier prices of diesel and kerosene at an immediate basis: CPD


Dhaka November 10 2021 :


The price hikes of diesel and kerosene will have both immediate and medium-term impacts on various sectors of the economy. The fuel price hike implies that there will be an increase in transportation cost, agricultural cost and electricity cost. Thus, all production cost will increase leading to cost of living to shoot up and end consumer will suffer.

In view of recovery from the adverse impacts of COVID-19, stability of fuel price is critically important given the ‘strategic’ nature of the commodity. In this backdrop, CPD recommends reinstating the earlier prices of diesel and kerosene at an immediate basis.

The accumulated profits of BPC should be enough to provide some cushion despite the previously accrued losses. The government can keep the prices at their previous levels through subsidies or tax and tariff cuts. Forecasts by multilateral agencies (e.g., World Bank) predict a downward movement of fuel prices in 2022. Absorbing the price shock and focusing on recovery should be the government’s prime concern at this point in time.

The Centre for Policy Dialogue (CPD) under its flagship programme, Independent Review of Bangladesh’s Development (IRBD), organised a media briefing on Fuel Price Hike: How Necessary Was It? which held at CPD Dialogue Room on 10 November 2021.

Dr Fahmida Khatun, Executive Director, CPD made the keynote presentation at the media briefing. She shared that, on 3 November 2021, Bangladesh Petroleum Corporation (BPC) raised the prices of diesel and kerosene at the retail level – to be effective from zero hours on 4 November 2021.

The prices of diesel and kerosene have been increased to Tk. 80/litre from Tk. 65/litre – indicating a 23.1 per cent rise. The price of furnace oil has also been raised to Tk. 62/litre from Tk. 59/litre – a 5.1 per cent increase. Amid the surging global energy prices, this decision came in order to recover the apparent losses incurred by the state-owned BPC, which is the monopoly of the market.

The price hikes of diesel and kerosene came at a time when prices for daily necessities were already exhibiting an upward trend. Compared to the corresponding period of FY21, prices of several commodities shot up in November 2021 (based on TCB data). The inflation data provided by Bangladesh Bureau of Statistics (BBS) only shows marginal increase in point-to-point basis and declining trend in moving average basis (up to September 2021).

This appears to be quite detached from the actual scenario on the ground and raises questions regarding the reliability of inflation data.

Professor Mustafizur Rahman, Distinguished Fellow; Dr Khondaker Golam Moazzem, Research Director, CPD; Towfiqul Islam Khan, Senior Research Fellow, CPD and  Muntaseer Kamal, Senior Research Associate, CPD were also present at the briefing and responded to questions from the journalists.


More News
© Copyright: 2020-2022

Bangladesh Beyond is an online version of Fortnightly Apon Bichitra 

(Reg no: DA 1825)

Developed By Bangladesh Beyond