Govt considering fuel price adjustment: Finance minister

‎Bangla Press Desk:   The government is considering adjusting domestic fuel prices as rising import costs, driven by ongoing instability in the Middle East, continue to put pressure on the state exchequer, Finance Minister Amir Khasru Mahmud Chowdhury said on Friday.

Speaking to reporters after a programme at Korean Export Processing Zone under Anwara upazila in Chattogram, the minister said Bangladesh has so far managed to maintain stability in energy supply despite disruptions in the global market.However, higher import prices for oil and gas are increasing the burden on exchequer, Khasru added.

“Even though global energy supply chains are facing disruptions, Bangladesh has been able to keep the situation under control. But the increased cost of imports is putting additional pressure,” he said.

“To address this, we are bringing all citizens under energy-saving measures. Alongside rationing and conservation efforts, the government is also considering adjustment of fuel prices,” he further said.

The minister noted that ensuring energy security has forced the government to source fuel from alternative markets, often at significantly higher costs.

“There is no room for compromise here. To keep agriculture, production, and import-export activities running, we must continue to procure fuel even at higher prices,” he said.

Khasru warned that any disruption in fuel supply would severely impact industries, agriculture, and daily life.

“If fuel supply stops, everything will come to a halt. That is why we are compelled to purchase fuel despite the higher cost,” he added.

According to the minister, the government has so far managed to maintain a stable supply of fuel, keeping transportation systems operational, industrial production ongoing, and agricultural activities largely unaffected.

He also pointed out that smooth travel across the country during the recent Eid holidays reflected the resilience of the energy supply system.

However, he stressed that controlling expenditure will be essential to sustain this stability.

As part of cost-cutting measures, the government has already introduced fuel-saving initiatives, including setting usage limits for ministers, lawmakers, and government officials. In some cases, fuel rationing has been reduced by up to 30%, with instructions to bear additional costs personally if limits are exceeded.

“We are all under a conservation programme. There is no scope for wastage in this situation,” he said, urging citizens to be more cautious in their fuel consumption.

The finance minister cautioned that prolonged global uncertainty could increase pressure on the economy, potentially affecting the national budget, development activities, and social safety programmes.

Responding to a question on inflation, he acknowledged that any increase in fuel prices could push up the cost of fertiliser, transport, and food items.

“It is natural that inflationary pressure may rise if fuel prices increase,” he said, adding that Bangladesh remains in a relatively better position compared to many countries.

On exports, the minister said there has been a recent slowdown, particularly in garments, textiles, and agricultural products, but described it as temporary.

“This situation has arisen due to pressure on global supply chains. Our garment entrepreneurs are capable - they have proven themselves in the past and will rebound quickly,” he said.He also highlighted the recent growth in remittance inflows as a positive development for the economy.

Regarding the capital market, the minister said major reforms are in the pipeline to reduce reliance on bank-based financing.

“We want to build an effective and credible capital market where both listed companies and investors can benefit,” he said, adding that large investments will increasingly be channelled through the stock market.

The minister also noted that that the current situation is part of a broader global challenge.

“The government is doing its part, but without public cooperation, it will not be possible to overcome this crisis,” he observed.