Planning Minister Kamal opposes Finance Minister Muhith’s plan to cut oil prices

Planning Minister AHM Mustafa Kamal is against lowering the fuel oil prices despite the finance minister’s plan to adjust them with the declining international prices.

“The oil prices in the international market can rise at any moment. Our government will have to hike the prices again if they are reduced now,” he says.
 
“Adjusting the prices frequently is a very tough thing to take care of,” Kamal said on Wednesday at a press briefing.
 
The government had avoided reducing the prices despite the fall in the international market in the past one year saying Bangladesh Petroleum Corporation (BPC) first needed to recover the losses it had sustained because of subsidy.
 
However, several days before the government hiked the retail prices of gas and power, Finance Minister AMA Muhith last week said he had plans to revise fuel prices in September.
 
Kamal said the decision not to lower the oil prices was the right one even though the global oil prices dropped.

“If we want to recover the BPC’s loss, there is no room we can lower the prices.”

The government last raised fuel prices in January 2013. Currently the price of octane is Tk 99 a litre, petrol Tk 97, kerosene and diesel both at Tk 68 per litre.

The planning minister, however, said the decision to raise the gas and electricity prices was appropriate.

“Gas and electricity prices in Bangladesh are the lowest in the world. There was no alternative to hiking the tariffs if we were to meet generation costs.”

Mustafa Kamal said, “The government cannot provide people with gas and electricity for free. How will the government run if that happens?”