Fuel prices may need adjustment soon: Khosru
“If the government treasury continues to deplete due to high-priced fuel imports, development projects and social welfare programmes will be affected,” he says.
Highlights:
- High-cost fuel imports straining the treasury
- Fuel supply for industries, transport, and agriculture remains normal
- Stock market reforms planned to boost investment
- Higher fuel prices could increase inflation via fertiliser and food costs
Finance Minister Amir Khosru Mahmud Chowdhury has indicated that a decision to adjust fuel prices in the national interest may need to be taken soon.
"If the government treasury continues to deplete due to high-priced fuel imports, development projects and social welfare programmes will be affected," Khosru said while speaking to journalists after an event at Korean Export Processing Zone (KEPZ) in Chattogram's Anwara today (3 April).
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"Therefore, in the country's interest, a decision on price adjustment must eventually be taken, he added.
The minister noted that the ongoing war in the Middle East has created risks of disruption in oil and gas supply.
Khosru, also the planning minister, further said, "Since Bangladesh relies heavily on fuel from the region, the government has to buy fuel at relatively higher prices from alternative sources to ensure supply."
He assured that the government is not compromising on fuel security. "However, continued high-cost fuel imports are increasing pressure on the treasury, which will be difficult to sustain in the long term."
Highlighting government savings measures, Khosru said rationing of fuel has been implemented for ministers, parliament members, and government officials.
He also mentioned that his own fuel use has been rationed by 30%.
However, the minister claimed that fuel supply remains normal. "The government has successfully kept industries, transport, and agricultural activities operational."
On the stock market, Khosru said major reforms will be introduced soon to restore investor confidence and encourage large investments through the stock market instead of banks, which is expected to ease pressure on the banking sector.
Regarding export earnings, he noted that global crises have reduced earnings in the garments, agricultural, and textile sectors.
However, the minister expressed optimism about increased remittances and recovery in the garments sector.
On inflation, he warned that a rise in fuel prices would also push up the cost of fertiliser and food products, thereby increasing inflationary pressure.
Khosru, however, noted that compared to many countries, Bangladesh has not yet increased fuel prices.
