Reduce diesel price

We know from newspaper reports that petroleum analysts suggest that the government adjust prices of petroleum products on a quarterly basis. But the government generally does not go against the common phenomenon that if prices go up in the international market, we do not raise the domestic prices and if international prices go down, we do not reduce the domestic prices.

However, it is learnt from newspaper reports that BPC has to spend Tk 120 billion a year as subsidy which mostly goes to the quick rental power plants. It used to purchase the petroleum fuels at a cost ranging between $105 to $107 a barrel a few months back. Now, it purchases a barrel of petroleum fuel at around $70 or less. It is true that BPC's liability is gradually shrinking due to the huge gap between the past and the current prices. But the reality is, BPC will fail to reap from it in the long run due to its cash crisis and even limited storage capacity.

It is undeniable that a depressed fuel price provides leverage for the government to keep domestic fuel prices low. And it gives some respite to consumers, particularly the low and fixed income groups who can then spend their savings on other purposes. However, we hope the government would reduce the price of diesel soon for giving some direct benefits of it to the people.