Bangladesh hikes fuel prices by over 50 percent as country seeks help from World Bank
The government has given another big blow to the inflation-stricken people in Bangladesh. Last night, the prices of petrol-diesel were increased by 51.7 percent. This is being said to be the biggest increase in the price of fuel in the history of the country. This is a double whammy on the people already facing inflation.
According to the new prices, which came into effect from 12:00 pm, the price of one liter of octane fuel has now become 135 Taka, which is 51.7 percent more than the previous rate of 89 Taka. Now the price of one liter of petrol in Bangladesh is now 130 Taka, that is, it has increased by 44 Taka or 51.1 percent since last night.
What did the ministry say?
The Ministry of Power, Energy and Mineral Resources has issued a statement regarding the increase in fuel prices. It said that this decision has been taken due to the increase in the price of fuel in the international market. Bangladesh Petroleum Corporation (BPC) has suffered a loss of Taka 8,014.51 between February and July due to selling fuel at low prices. In the press release of the ministry, it has been said that many countries including India have already taken this decision due to increase in the price of fuel in the international market.
Why did Bangladesh increase the price?
Bangladesh is seeking $2 billion from the World Bank and the Asian Development Bank (ADB) amid efforts to increase its foreign exchange reserves. Bangladesh’s $416 billion economy has been among the fastest growing economy in the world for years, but rising energy and food prices due to the Russia-Ukraine war have increased its import bill and current account deficit.
In the report, citing people related to it, it said that the government has written a letter to ADB and the World Bank, seeking $ 1 billion. At the same time, only last week, the IMF said that it will discuss the request of Bangladesh to seek loans. Bangladeshi media had reported a few days ago that the country wants $4.5 billion from the International Monetary Fund (IMF), which includes budgetary and balance of payments support. The textile industry of Bangladesh is the world’s number 2 exporter after China.
