Energy adviser defends fuel price hike
Energy Adviser Tawfiq-e-Elahi Chowdhury yesterday defended the latest fuel price hike, saying that the government had no other alternative as it plans to stick to its energy subsidy target.
"We know that the cost of paddy production and transportation will increase to some extent due to the price hike, but there is no alternative," he told private television channel ATN Bangla.
"Six months have already passed of the current budget. If we are to remain close to the subsidy target then we have to raise the fuel prices," said the adviser.
Tawfiq also said had the global price of oil gone down substantially then the government would have been able to remain within its energy subsidy target without increasing the prices.
"We are still providing more than Tk 10 as subsidy for per litre of diesel and kerosene," he said.
Before Thursday's rise, the government had been paying Tk 18.77 as subsidy per litre of diesel and Tk 19.15 per litre of kerosene, according to the energy ministry.
Now the government would give subsidy on diesel and kerosene by Tk 11.77 and Tk 12.15 a litre.
The latest rise will help the government, which plans to spend Tk 8,500 crore in fuel subsidies, save up to Tk 2,500 crore, according to energy ministry officials.
The adviser also said still the diesel price in Bangladesh was Tk 8 lower than that in India.
This was the fifth fuel price hike since the Awami League-led government came to power in December 2008. It, however, did not raise any price last year despite facing huge financial strains.
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