The recent rise in electricity and fuel prices has put the greatest pressure on the country’s middle- and lower-middle-income families.
Already burdened by long-standing high inflation, the prices of essential goods have become unaffordable. On top of that, increased costs of electricity, fuel, and transportation are making household budgeting even more difficult.
Hossain Ali, a resident of Rampura in Dhaka, said that everything is becoming more expensive while income remains the same, making it increasingly hard to manage family expenses.
Rahela Begum, a homemaker from Maniknagar, said that she used to shop according to a list, but now has to calculate before buying each item.
Recently, the Bangladesh Energy Regulatory Commission (BERC) raised the average retail electricity price by nearly 17%. At the same time, the prices of octane, petrol, and kerosene were also increased by Tk5 per litre.
Professor MM Akash of the Department of Economics at the University of Dhaka said that higher energy prices increase production costs and transport expenses, which eventually push up product prices, shifting the burden onto consumers.
SM Nazer Hossain, vice president of the central committee of Consumers Association of Bangladesh (CAB), said that electricity and energy are key drivers of the economy. Therefore, price increases in these sectors affect almost all areas of economic activity, raising living costs and further fueling inflation.
According to the latest data from the Bangladesh Bureau of Statistics (BBS), inflation in the country remains above 9%. In this situation, ahead of the new fiscal budget, the rise in electricity and fuel prices is expected to further worsen living conditions for the middle class.