Fuel price hike won't have major impact on commodity prices: Commerce minister
The government is working to keep supply chains uninterrupted and prevent fuel price hikes from pushing up inflation, says the minister.
Highlights:
- Govt monitoring transport and supply chains to contain price pressure
- Gas supply has returned to normal after a mechanical fault at an FSRU
- Minister warns action against traders trying to exploit the situation
- Govt plans to raise tea garden incomes through diversification and solar power
Commerce Minister Khandakar Abdul Muktadir today (22 September) said the recent increase in fuel prices is unlikely to have a major impact on the prices of essential commodities if the supply chain remains uninterrupted.
"The government is focusing on keeping the supply chain uninterrupted so that the fuel price hike does not increase inflation or disrupt the supply of goods," he said while answering questions from journalists after distributing raincoats among tea workers at the factory field of Lakkatura Tea Garden in Sylhet.
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Muktadir said international fuel prices have increased and many countries automatically adjust domestic fuel prices in line with global markets.
"In many countries, when prices rise in the international market, the price is automatically adjusted in the domestic market. You wake up in the morning and find that the price at the petrol pump has increased," he said.
In Bangladesh, however, the government determines fuel prices, making price adjustments more visible to consumers, he added.
The minister said higher fuel prices could increase transport and supply costs, which may affect commodity prices if disruptions emerge in the supply chain.
"We are identifying areas where there are disruptions in transport and the supply chain and working to address them so that we can manage the possible impact of the fuel price hike," he said.
He said the commerce ministry held a meeting with importers and leaders of different business organisations two days ago to discuss problems related to imports, transportation and the supply of goods to the market.
"We are looking at the areas where there are disruptions in communication and the supply chain. We are working to remove these problems so that we can manage the possible impact of the fuel price hike," Muktadir said.
Gas supply returns to normal
The minister also said the recent gas supply crisis has been resolved after a mechanical fault at an FSRU disrupted supplies for several days.
With gas supplies now normal, factories that process imported essential commodities have also returned to regular production, he said.
Factories processing imported commodities such as sugar and soybean oil are now operating at full capacity, Muktadir said, adding that there should be no major shortage of these products in the market if the supply chain remains normal.
"If the supply system remains normal, the fuel price hike will not have a major negative impact on the market," he said.
"Prices will, Inshallah, remain stable and there will not be any noticeable impact on prices," he added.
The minister said the government is also monitoring the market to prevent unscrupulous traders from taking advantage of the situation.
"We do not want the fuel price hike to create additional pressure on ordinary people. We are taking necessary steps in consultation with the relevant ministries and the business community," he said.
Plans to raise tea garden incomes
Earlier, raincoats were distributed among 1,980 workers from different tea gardens.
Addressing the workers, Muktadir said the government has taken initiatives to increase the income of tea gardens and make them more profitable.
"We held a meeting a few days ago on the prime minister's instructions to make tea gardens profitable," he said.
The government is considering planting other trees, including timber and spice trees, without harming the health of tea plants, he said.
Solar power facilities will also be introduced in gardens where feasible to increase their income, the minister added.
"The main objective is to increase the income of tea gardens so that we can also increase the wages of workers," he said.
The government is also arranging ambulances for tea workers and plans to establish schools in gardens where there are none, he said.
Roads in tea gardens will also be repaired as part of a broader plan to improve workers' living standards, Muktadir added.
"The workers will benefit from these measures in health, education, wages and other areas," he said.
