The Tk20-per-litre fuel price hike has triggered protests from Jamaat-e-Islami and the National Citizen Party, while BNP acting secretary general Ruhul Kabir Rizvi defended the increase, saying fuel prices in Bangladesh remain relatively low by international standards.
The latest price hike took effect from midnight on Sunday, raising diesel to Tk135 a litre from Tk115, kerosene to Tk155 from Tk135, petrol to Tk160 from Tk140 and octane to Tk165 from Tk145.
Rizvi, speaking at a press briefing today, said the government was making sincere efforts to deal with the fuel crisis and was continuing to provide subsidies despite the ongoing conflict in the Middle East.
He said the government was incurring losses even after adjusting domestic fuel prices and cited fuel prices in other countries to argue that Bangladesh’s rates remained comparatively low.
The government has said the adjustment was necessary because of higher international fuel prices and freight costs amid the Middle East conflict, as well as mounting losses of the Bangladesh Petroleum Corporation (BPC).
The price hike, however, prompted fresh protest programmes from opposition parties.
Jamaat-e-Islami announced a protest procession at 4:30pm today from the north gate of Baitul Mukarram National Mosque in Dhaka, demanding withdrawal of the fuel price increase.
The NCP also announced a protest procession at 7:30pm from the Banglamotor area, organised by its Dhaka North and South city units.
The Amar Bangladesh Party (AB Party) also demanded withdrawal of the increase, saying a Tk20 jump in the price of every major petroleum product would add to inflationary pressure.
In a joint statement, its chairman Mujibur Rahman Manju and general secretary Barrister Asaduzzaman Fuad said higher fuel prices would increase transport and freight costs and affect agriculture, industries and the prices of essential commodities.
They called for a full assessment of the social and economic impact of fuel-price increases and urged the government to reduce waste, corruption, inefficiency and unnecessary expenditure in the energy sector.
The latest hike has also raised concerns among businesses and transport operators because diesel is widely used in road transport, irrigation, power generation and industrial operations.
Higher diesel prices are therefore likely to feed into transportation and production costs, with potential implications for the prices of goods and services.
The political reactions came as the government sought to justify the adjustment on financial grounds.
Rizvi said discussions should focus on how fuel could be supplied at lower prices rather than using what he described as undesirable language against the government during opposition programmes.
He also warned that the BNP would not remain passive if the opposition issued what he described as a “one-point” warning.
The latest increase is part of a series of fuel-price adjustments this year, with diesel now costing Tk35 more than it did before the February increase.