Editorial
Flawed fuel-price hike
Impact on living cost ignored
THE international fuel market over the last one year or so has been whimsical no doubt, the prices of crude and refined petroleum fluctuating between a high of $28 and $35 per barrel and a low of $27 and $33.5. However, as far as the country's import is concerned, the price has been more or less steady for both crude and refined fuel in the range of $27 to $29. Still, the little did government hesitate when it came to raise the prices of petrol, octane, diesel, jet fuel, etc twice in the span of just a few days over one year. In both cases, the reason, or should we say the pretext, has been the same: the price upswing on the international market.
Interestingly, halfway through the 2001-2002 fiscal, when this government effected the price-hike for the first time on December 27, the state-owned Bangladesh Petroleum Corporation (BPC) was counting Tk 10.50 for diesel, Tk 10.25 for kerosene, Tk 11 for octane and petrol, and Tk 10.45 for jet fuel in import cost. As per the revision then, prices of diesel, kerosene, petrol, octane and jet fuel were fixed at Tk 17, Tk 17, Tk 28, Tk 30 and Tk 21.15 respectively. On top of such an expansive revision, comes the latest hike at an weighted average of 13.75 per cent. International market prices aside, the two other reasons the government has tried to establish -- recoup the losses of the BPC and discourage smuggling to India -- do not hold much water either.
On the balance, the decision not only defies any logic but also reflects the government's ignorance or indifference to the impact it will have on overall cost of living.
According to a Consumers Association of Bangladesh (CAB) survey, the cost of living in the country shot up 8.52 per cent last year. Increased prices of fuel, and also of water, will certainly push it quite a few percentages higher this year. Unfortunately for the people, there has not yet developed any institution nor is there any comprehensive consumers' right protection law in force in the country yet to protect and promote the interest of the consumers. If such an illogical price hike had been resorted to elsewhere, public protest would have forced the government to backtrack no doubt. Our consumers are neither aware of their interests or rights nor are they assertive about it. People in good faith have put trust in the government to protect their interests and rights. Neither this government nor the ones before have shown any respect to their faith.
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