Fuel price hike will lead to higher inflation pressure: Bangladesh FM

11 Aug '22

1 min read

Pic: 123rf.com/ bizoon

Inflation will rise even further in Bangladesh due to the recent increase of fuel prices, according to Bangladesh’s finance minister AHM Mustafa Kamal. The country’s government hiked fuel prices by 51.7 per cent recently with the aim of cutting down Bangladesh’s subsidy burden. The state-run Bangladesh Petroleum Corporation (BPC) had suffered losses of more than 8 billion taka on oil sales in the six months to July 2022.

“The relationship between energy and economy is intricate. When the price of fuel increases, the prices of goods and services also rise accordingly. The hike in oil prices will have an impact on the overall economy and people's standard of living,” said AHM Mustafa Kamal at a press conference. “Inflationary pressure will certainly increase. But we will continue our efforts to reduce the rate of inflation.”

Domestic inflation in Bangladesh is anticipated to peak in the third quarter of 2022 and decline towards the end of 2023 as global commodity prices will come down, as per a finance ministry report.

Bangladesh had last increased diesel and kerosene prices by 23 per cent in November, resulting in about a 30 per cent jump in transportation fares, as per Bangladeshi media reports.

Fibre2Fashion News Desk (NB)

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