The steep rise in the price of all types of fuel is being felt everywhere in the country. Bus fares, truck and lorry freight charges and the prices of all kinds of daily essentials have gone up. Industrial production and the everyday cost of living are under unusual strain. With frustration rising, quarrels in the streets have increased too, especially on public transport and in fresh produce markets.
On Tuesday, anger and frustration were evident across Dhaka among bus drivers and helpers, shoppers and traders at fresh markets, the poor, small traders and people on low incomes. Nobody can accept the government’s decision to raise the price of diesel, petrol, octane and kerosene by 20 taka in one go. “Since fuel went up, sales have dropped a lot over the past two days,” said Bablu Sheikh, who runs a tea stall at Karwan Bazar. “It seems people have even given up drinking tea!”
Following the fuel price rise, bus fares have been raised by 17 paisa per kilometre. The decision was taken at a meeting of the road transport ministry on Tuesday. When diesel went up by 15 taka a litre in April, bus fares rose by 11 paisa per kilometre. Until this increase, the bus fare in the Dhaka and Chattogram metropolitan areas was 2 taka 53 paisa per kilometre; the new fare will be 2 taka 70 paisa. The minibus fare will rise from 2 taka 42 paisa to 2 taka 59 paisa.
The distance from Farmgate in the capital to Signboard via Jatrabari is 14.4km. At the new rate of 2.70 taka per kilometre, the fare for that route comes to just under 39 taka. Labbaik Paribahan on this route was already charging 40 to 45 taka, and since the diesel price rise it has been charging 50 taka. The fare from Farmgate to Malibagh, 10 taka until now, has become 15 taka.
On long-distance routes, the fare for 52-seat buses, 2 taka 23 paisa per kilometre until now, will rise to 2 taka 40 paisa. Those involved say, however, that since the fuel price rise, passengers on almost every route in the capital have been charged an extra 5 to 20 taka each. Outside Dhaka, fares have risen by 50 to 300 taka per passenger, depending on distance and the bus. Arguments between passengers and drivers or helpers over the higher fares are increasingly turning into quarrels.
Impact on fresh markets
Shoppers and traders say the fuel price rise has hit fresh markets hard, with the price of every kind of vegetable up 5 to 15 taka a kilogram. Most vegetables that sold for 60 to 70 taka a kilogram now cost 70 to 80 taka. Potatoes and papaya, the cheapest vegetables, are up 5 taka a kilogram to 25 to 40 taka. Some vegetables, including aubergine, have passed 100 taka. Rice, lentils, sugar and cooking oil were already expensive, and now higher transport costs have left shoppers gasping. Buyers and sellers argue constantly but can find no way out. Wholesalers say the cost of transporting vegetables from different parts of the country has risen by 2,000 to 6,000 taka, depending on distance and the truck.
Ride-share riders under the most pressure
To escape rising unemployment, hundreds of thousands of young people, some educated and some with little schooling, have turned to ride-sharing, carrying passengers on motorcycles, to make a living. The rise in octane and petrol prices has put them in serious difficulty. “Fuel prices are going up, but motorcycle fares have not,” said ride-share rider Alauddin. With fewer passengers, he sometimes has to wait hours for a single trip, and after all expenses it has become hard to earn even 800 to 900 taka a day.
Industrial output set to slow
Industrialists at various levels say the fuel price rise has pushed up their production costs considerably. Factories of every kind, including garments, textiles, cement, steel and ceramics, need electricity, gas and diesel, and production is already being disrupted by inadequate fuel supplies, they say. The latest price rise will increase production and transport costs, and employment will shrink as a result.
Truck fares up too
Truck fares have risen across the country along with fuel prices, by 2,000 to 8,000 taka per trip depending on distance, vehicle size and cargo. Those involved say higher prices for tyres and spare parts and higher ferry charges have also pushed up truck fares. Some owners are reportedly keeping their trucks off the road because they cannot cover the extra costs. The truck fare from Benapole to Dhaka, previously 20,000 to 21,000 taka, was 25,000 to 26,000 taka on Tuesday. Because fares have been raised citing higher costs and a shortage of trucks, many importers have struggled to clear goods from Benapole land port. They say the 400 to 600 trucks loaded and unloaded there each day have fallen to half that number.
Calls to withdraw the decision
The research and policy organisation Institute for Planning and Development (IPD) has condemned and protested against the sudden decision to raise fuel prices steeply without any discussion, public hearing, public consultation or meaningful talks with stakeholders, and without any public assessment of the socio-economic impact. In a statement, the organisation’s executive director, Mohammad Adil Khan, called the decision to raise prices on the grounds of international market volatility and revenue pressure against the public interest, short-sighted and a barrier to economic stability, and demanded that the government withdraw it immediately.
Will electricity prices rise too?
Officials at various levels and experts in the sector say international organisations are already keeping up pressure on the government to raise electricity prices again to cut subsidies. The fuel price rise has also increased the cost of generating electricity, as the country relies increasingly on fuel oil for power generation. They expect the government to consider raising electricity prices soon to reduce subsidies. Experts say there are problems either way: if the government tries to cut costs by generating less power, the existing load-shedding will get worse.
What experts say
Analysts say the fuel price rise will push up transport fares, the prices of daily essentials, the cost of farm production and industrial output, and in some cases the production cost of factory goods and the cost of delivering them.
Selim Raihan, a professor of economics at Dhaka University, said people on low incomes are already under severe pressure. The fresh rise in fuel prices could put even greater strain on household monthly budgets, he said, and could bring high inflation, lower purchasing power and wider inequality.
Analysts fear that repeated increases in fuel and electricity prices will increase poverty, noting that research by various organisations already shows poverty has risen. In this situation, they stress that the government should focus on cutting its own spending.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report