Commerce Minister Khandker Abdul Muktadir has said that recent increases in fuel prices are not responsible for the country’s inflation, arguing that the impact on overall costs remains limited.
The minister made the remarks in parliament on Monday while responding to questions from independent lawmaker Rumin Farhana during a session chaired by Deputy Speaker Kaiser Kamal.
Facing concerns over persistent high prices of essential commodities, Farhana noted that Bangladesh had experienced double-digit inflation for a prolonged period, with food inflation still above 9 percent. She asked whether the government had taken effective steps to control rising prices.
In response, Muktadir said it was important to understand the underlying causes of inflation, stressing that fuel price adjustments in Bangladesh have been “moderate” compared to the global market.
“Globally, fuel prices have increased significantly, but in Bangladesh the rise has been kept at a tolerable level,” he said.
The minister explained that fuel accounts for only about 7–8 percent of total production costs in industrial factories. Even with a 15 percent increase in diesel prices, the overall impact on production costs remains limited, he added.
He also cited the transport sector, noting that a bus traveling 200 kilometers consumes around 25–30 liters of diesel, increasing costs by roughly Tk 450. However, when spread across goods transported—such as a truck carrying 10,000 kilograms—the per-unit impact becomes minimal.
“At first glance, the increase may seem significant, but when calculated per unit of transported goods, it is not a major driver of inflation,” he said.
Drawing comparisons with other countries, the minister said many nations follow automated fuel pricing mechanisms. He pointed to the United States, where fuel prices rose sharply from around $2.70–$2.80 per gallon before global conflicts to over $5 afterward.
Muktadir emphasized that governments worldwide have adopted similar measures to maintain economic balance. “We cannot allow fundamental imbalances in the economy. Like other countries, we have adjusted prices moderately to maintain stability,” he added.