Govt reviewing fuel price adjustment proposals, subsidy requirements
Authorities are currently analysing how much subsidy would be required if existing fuel prices are maintained.
The government is currently reviewing proposals from state-owned distributors to adjust fuel prices, while simultaneously assessing the subsidy implications under multiple pricing scenarios, according to the Energy and Mineral Resources Division (EMRD).
"We have received the proposal from distributors regarding a fuel price adjustment. We are now examining it carefully," EMRD Joint Secretary Monir Hossain Chowdhury told a press conference at the Ministry of Power, Energy and Mineral Resources today (30 March).
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According to officials familiar with the process, the authorities are currently analysing how much subsidy would be required if existing fuel prices are maintained.
The review includes detailed calculations on subsidy requirements under different price points, aimed at striking a balance between easing fiscal pressures and limiting the burden on consumers.
Monir said one of the key considerations is the sustainability of subsidies, given the conditions of the economy.
"We are analysing different scenarios – if prices are kept unchanged, how much subsidy will be needed, and if, for example, prices are increased by Tk2 to Tk5, what the subsidy situation would look like," he added.
The final decision will be made based on the government's overall economic capacity and fiscal priorities, he added.
Monir said the decision on hiking fuel price to be made within the next one to two days, after completing the analysis.
The discussion on hiking fuel prices comes in the face of a global crisis stemming from the Middle East war. In order to cope with energy shortages, prices have increased in many neighbouring countries, and some countries have even shut down educational institutions due to energy shortages.
Earlier, Home Minister Salahuddin Ahmed said keeping fuel prices unchanged in the country, despite their rise in international markets following the Middle East war, was a major success of the government.
