Bangladesh announces fuel prices hike to highest in its history, stokes inflation fears

Bangladesh has announced around a 50% hike in fuel prices which came into effect from Saturday, 6 August. It is reportedly the country's highest increase in fuel price since the time Bangladesh got independence in 1971. The people rushed to the fuel filling stations on Friday, 5 August, just after the government announced the new fuel rates, ANI cited The Dhaka Tribune report. 

The Bangladesh government on Friday, 5 August, announced the increase in fuel prices by up to 51.7% and added that the decision will take effect from Saturday. The Ministry of Power, Energy Resources in an official notification informed that a liter of octane would now be available at a price of 135 taka, which is 51.7 percent higher than the previous price of 89 taka. Bangladesh Petroleum Corporation (BPC) in a statement noted that  they faced a loss of 8,014.51 Taka from February to July by selling fuel at less price. Several fuel filling stations in Dhaka's Mohammadpur, Agargaon, Malibagh, and other areas reportedly suspended their operations and announced that their sales would resume after midnight when the decision regardings new prices would come into effect, ANI cited Dhaka Tribune reported.It is worth mentioning that the war between Russia and Ukraine as well as COVID-19 pandemic has affected the fuel price. Notably, Russia exports the largest amount of oil and gas to the entire world. 

Bangladesh witnesses decrease in inflation in July 

The inflation in Bangladesh has witnessed a drop from 7.56% in June to 7.48% in July, Xinhua cited data, Bangladeshi Planning Minister MA Mannan has announced about the rate of inflation in his nation. Mannan called the reduction in the Consumer Price Index a 'good news' for the government and stressed that they had made efforts to control inflation in line with the budgetary target. As per the Xinhua report. inflation has witnessed a rise from the same month in 2021. The inflation in Bangladesh in July 2021 stood at 5.36%, however, the inflation has now reached 7.48%, as per the Xinhua report. The Consumer Price Index (CPI), informed that the food inflation has witnessed a drop from 8.37% in June to 8.19% in July. The non-food items inflation witnessed a rise from 6.33 percent in June to 6.39 percent in July. 

Inputs from ANI

Image: PTI/ANI