No scope to reduce fuel prices

State Minister for Power, Energy and Mineral Resources Nasrul Hamid yesterday rejected the possibility of reducing fuel prices.

“Due to the global situation, there is no scope of reducing fuel prices in the local market,” he said, in reply to a question from reporters at a briefing at his residence.

He said there is little opportunity to be hopeful about the energy scenario.

On Wednesday, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) demanded the diesel price be reduced, as the cost of doing business has increased substantially due to the hike and continued load-shedding.

A litre of diesel was sold at Tk 80 in the domestic market last year. But this year, the government hiked the price to Tk 109. So, various industries have been struggling to remain productive while managing soaring operational costs, wrote BGMEA to the prime minister.

Due to the global situation, there is no scope of reducing fuel prices in the local market.

On August 5, the government hiked fuel prices by up to 51.7 percent, and later, reduced them by up to 4.39 percent.

About Tuesday’s grid failure, Hamid said the matter will be made clear after the probe body’s report. “Two separate committees are working to find the reason behind the failure.”

About upgrading the grid, he said the authority has taken up a project to upgrade the transmission system.

“The prolonged process of getting money from the World Bank and the Covid situation put the project in limbo. We need at least two years to finish the automation process,” he explained.

Earlier, experts blamed poor electricity transmission equipment, lack of a smart grid, and the ill-equipped National Load Dispatch Centre for Tuesday’s national grid failure, which caused blackouts in half the country.