Daffodil International University
Faculties and Departments => Faculty Sections => Topic started by: mamun.113 on September 24, 2014, 02:26:40 PM
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The government is raising the prices of gas, diesel and kerosene. Other than for power production, the price of gas will go up in all sectors. Subsidy on diesel and kerosene will be removed. That will mean a possible five taka increase per litre.
The proposal to increase these prices has been finalised, according to sources in the ministry for power, energy and mineral resources. The proposal to increase the price of gas will be sent to the Energy Regulatory Commission (BERC) this week. The matter will be decided upon at a hearing. The price of diesel and kerosene may be increased in January.
The government has been making significant profit on petrol and octane but has no plans to decrease the prices of these.
Earlier on 4 January 2013 and 30 December 2011, the government had increased the price of fuel oil. The last time the price of gas had been increased was on 1 August 2009. However, the price of CNG had been raised after that.
An increase in the price of fuel pushes the cost of living up in all sectors. This will make it difficult for the government to manage the overall economy, but its decision to raise fuel prices is final.
Distinguished fellow Debapriya Bhattacharya of the Centre for Policy Dialogue (CPD) says that the government is doing this basically to meet conditions of the International Monetary Fund (IMF). The government's earning is less at the moment too so this price increase is necessary for the government to balance out its expenditure. That is why even though the international price of fuel has gone down, the government has decided to raise prices.
Debapriya says that as a result this, production costs and the price commodities will go up. The slump in investment and employment will worsen.
And now for the first time a price will be fixed on the gas being extracted by the gas companies. For example, Titas extracts gas and supplies it to Bangladesh Gas Field Company Limited (BGFCL). They don't have to pay the government anything for this. But from now on they will have to pay and a price is to be determined for this. The funds collected through this revenue will be used for the development of new gas fields and increase in production. The Prime Minister has approved of the matter.
State minister for power Nasrul Hamid told the reporter "Other than increasing the price of gas, priorities for its use will also be determined. Top priority will be given to industries. This will not include random industries mushrooming up here and there. No new distribution line will be laid for new gas connections in the residential sector, but subsidy will be given to LP gas to make it easily available for residential consumers.
The state minister says they are considering provision of subsidy through the agricultural ministry directly to farmers who use diesel so that the increase in diesel prices will not impact on them negatively.