The Centre for Policy Dialogue (CPD) on Wednesday urged the government to reinstate the previous fuel prices in order to sustain the economic recovery of Bangladesh in the post-Covid-19 era.
According to CPD, the hiked fuel price is an added burden on the people at a time when the prices of commodities have already been increasing over the span of the last few months.
Transport fares and prices of daily essentials went up after the government hiked diesel and kerosene prices by Tk15 per litre to Tk80 — a move that was sparked off by an unstable global oil market.
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“The prices of daily essentials have already increased, and the hike in fuel prices will only add to the sufferings of the common people,” CPD Executive Director Dr Fahmida Khatun said in a press briefing following a conference.
The CPD also said that any deficit can be buffered by reducing taxes on fuel, which brings in about Tk9,000 crore annually.
Terming fuel “a strategic commodity,” the think tank also said that any losses incurred by the Bangladesh Petroleum Corporation (BPC) can also be adjusted from the profits it accumulated in the last seven years by selling fuel at prices higher than those in the global market.
CPD Distinguished Fellow Professor Mustafizur Rahman said the decision to raise fuel prices is unethical from all points of views-economic, social and political.
“People have been struggling to survive the impacts of Covid-19 as their incomes have come down. At this stage, such a step is not a positive move for the economy,” he said.
Rahman added that the 26.5% increase in bus fares against the 23% rise in fuel price is totally unjustified when fuel covers only 40% of the total costs of operating a bus.
Based on that calculation, bus fares could have been raised by a maximum of 10%, he added.
CPD Research Director Dr Khondaker Golam Moazzem said the government could easily cover its possible losses of Tk7,200 crore without increasing the prices by withdrawing 34% taxes on petroleum import.
He noted that the government has a plan to earn Tk7,808 crore revenue from the taxes on import of petroleum fuel.
“If the taxes are withdrawn, the income will not come. Otherwise, there will be no loss on the part of the government, but people will get a big relief,” he added.
