Fuel price hike temporary: State minister

State Minister for Power, Energy and Mineral Resources Nasrul Hamid has said the recent price hike of fuel oils is temporary and expressed hope to bring down changes from next month. 

"We had no choice but to raise the prices. We have not done anything extra in the context of the global market. And if the price comes down in the world market then we will adjust the price again," he told the media Saturday (6 August) afternoon at his residence. 

He reiterated that the government had no other choice but to raise fuel prices as Bangladesh Petroleum Corporation (BPC) incurred losses of over Tk8,000 crore. 

"Over the space of last four months, BPC had to incur losses over Tk8,000 crores to keep the market stable and even after this move the government would have to bear Tk8.13 in per litre for importing petrol" 

He also denied recent speculative reports suggesting IMF condition acted as the "trigger" behind this staggering hike. 

While this latest rise has come under some criticism, Nasrul attributed this crisis to global headwinds at the outbreak of the ongoing Russia-Ukraine war. 

He claimed that Bangladesh still holds lower prices than the likes of its neighbours. 

"As the war left the global supply chain in a tailspin, triggering troublesome costs for its people, hardly any other options can be left for the government unless raising the prices. Even these latest adjustments put our country with lower rates for consumers in comparison with neighbouring countries" 

The government on Friday increased fuel oil prices by 42.5% to 51.6%, the highest in 20 years, dealing a big blow to people already overwhelmed by skyrocketing prices of essential goods amid record inflation.

The Energy and Mineral Resources Division hiked diesel and kerosene prices by Tk34 per litre to Tk114 and octane and petrol prices by Tk46 per litre to Tk135.