Fuel price hike a fresh blow to Covid-hit economy: Experts

GBNEWS24DESK//

The price hike of fuel oils is going to hit the country’s four major sectors in addition to casting a negative impact on the living cost as the prices of essentials are already in an unchartered territory, experts said.

They said the announcement of the price hike of diesel and kerosene has sparked off tensions in four sectors — power, transport, agriculture and industry — as diesel is the main fuel especially in transport, agriculture and industries, while power sector largely depends on it, reports UNB.

Mustafizur Rahman, a Distinguished Fellow at the Center for Policy Dialogue (CPD), Mohammad Ali Khokon, President of Bangladesh Textile Mills Association (BTMA) and Energy experts and professor of Bangladesh University of Engineering and Technology (BUET) Dr Ijaz Hossain came up with the apprehension while talking to UNB.

They said agriculture, transport, industry and power are four big sectors of the country and the sectors are still trying to recover from the depths of the pandemic fallouts. It is a fresh blow to the economy, they said.
According to official sources, the country consumes 60-65 lakh tons of fuel oil every year and 40-45 lakh tons that is diesel.

As per the new announcement, the prices of diesel and kerosene have been raised by Tk 15 per litre to Tk 80. The energy sector has already been reeling under a gas crisis and the sudden rise in diesel and kerosene prices will aggravate the situation.

The economists also believe that the rise in diesel and kerosene prices is also going to increase the overall cost of living in the country, adding to the woes of the poor people and also the middle class.

According to them, the continuation of this price increase will destabilize the food and service sectors, especially the sectors where the use of such fuel products is high. The common people will suffer most as it is going to have a big impact on other sectors besides transport.

CPD Special Fellow Prof Mustafizur Rahman said the rise in diesel-kerosene prices would affect all the sectors, including transport, agriculture and electricity. The economy is under the pressure of inflation and the rise in fuel oil prices will have a negative impact on all levels, starting from the consumer to the producer, he feared.