While public dissatisfaction has been felt since Friday's increase in fuel oil prices, experts are still trying to dissect what led to the sudden decision, when fuel prices were reportedly falling in global markets.
Dhaka Tribune tried to find out what experts from the energy sector, public transport, industries, politicians and the government had to say regarding this new development.
'Economy apparently unable to take pressure of fuel price hike'
M Tamim
Professor of Petroleum and Mineral Resources at Buet
There was a fear that prices would be slightly increased. It could have been kept at a tolerable level. But the amount in which it has been increased is beyond our imaginations.
All of the reasons given by the government for increasing the price of fuel oil are invalid.
Moreover, the price of diesel has dropped from $170 to $130 per barrel in the global market. Crude oil prices fell to $100. This rate is expected to further drop to $70-80 by the end of this year.
The economy does not seem prepared to take the pressure of such a sudden increase in prices.
Moreover, there was always a price difference with India. Raising the question now of smuggling is simply illogical.
'Government acting arbitrarily to raise fuel oil prices'
Ijaz Hossain
Former Buet professor and panel adviser at FBCCI
When talking about administered prices, this price is supposed to be fixed in light of social consideration. One cannot set such a high price on social considerations.
It (social consideration) always requires subsidies when excess prices rise. That is the administered price.
The people will suffer, and the people of a country like ours will not be able to bear it—the price is not determined by the world market rate.
If the price falls in the world market, then it is the government's decision whether to reduce prices or keep them as they are. But I will say that Friday's administered prices go against that same policy.
Since this price is fixed by the administered price process, it is never justified to increase it so much. Here the government is being arbitrary. There is no policy in sight.
For this, a decision has to be taken through an organization like Bangladesh Energy Regulatory Commission (BERC) to increase or decrease the price. If it is too high, then a subsidy has to be given.
We have been saying for a long time that pricing has no set principles. There needs to be a policy for this.
One thing this proves is that the government is getting very stressed about the economy and/or everything else. By taking such a decision they are also proving that they cannot bear this pressure and they have no money in hand.
'Turmoil in the transport sector will go up'
Mozammel Haque Chowdhury
Secretary general at Jatri Kalyan Samity
The people of the country are disoriented by the increase in the prices of daily commodities.
During such unbearable times, the price of fuel oil has increased by almost 50%.
This has already caused great suffering in public life.
Just because of this decision now transportation costs will double.
The price of daily necessities will go beyond the affordability of the mass people.
There is already turmoil in the transport sector now it will rise even more.
'Hikes will create multiple impacts on RMG sector'
Shams Mahmud
Managing director of Shasha Denims
The apparel sector of the country will have multiple impacts due to the hike in fuel prices.
Many factories generate power by diesel-fired generators during load-shedding.
Since power rationing is taking place, the use of generators has already increased.
So, the hike in diesel price will increase the production cost.
Moreover, the cost of transport will also increase.
Rising fuel prices will increase the cost of production in the agriculture sector, which will lead to the abnormal increase in food prices.
It will increase the pressure on fixed-income people and lower income people.
Since RMG workers are among them, they will surely demand a new wage board due to the food inflationary pressures.
The implementation will further increase the cost of apparel production.
'51% hike a ruthless decision'
GM Quader
Jatiya Party chairman and deputy leader of opposition
More than 51% fuel price hike is a ruthless and unprecedented decision.
Such a rise in fuel prices would cause a major catastrophe in people's lives.
This has proved that the government has no mercy towards the people of the country.
While prices have started to fall around the world, the rise of fuel prices in the country has disappointed all quarters.
Now the transportation cost will increase due to this. The price of daily essentials will increase by a large number.
Besides, the production cost of domestic products will increase and the price will also increase.
Disaster will also befall the export industry. The economy of the nation will experience negative impacts.
'Government forced to hike fuel oil prices'
Nasrul Hamid
State Minister for Power, Energy and Mineral Resources
Bangladesh Petroleum Corporation (BPC) incurred a loss of Tk8,014.51 crore in the last six months, from February to July this year in fuel sales of all its products.
In this situation there was no option but to increase the prices to keep the fuel oil supply stable.
The government would still incur a loss of Tk8 per litre despite the increase in the price of diesel, and it had to raise octane and petrol prices to offset that.
We are repeatedly asking everyone to be frugal, to save on fuel and to use cars less often, as the transport sector is the biggest user of diesel.
Power generation accounts for only 10% of diesel use.
We will readjust the prices if they come down in the international market.
We tried to keep the prices at a tolerable level, but even then, many might not consider it manageable.
The public has to remain patient. The new prices will not seem tolerable to everyone. But we were without any other options.