The government has kept fuel prices unchanged for October, but the impact of last month’s Tk20-per-litre hike is continuing to ripple through Dhaka’s kitchen markets, with traders reporting higher transport costs and consumers facing increased prices for vegetables, meat and eggs.
The government on Wednesday night announced that fuel prices would remain unchanged in October, about 10 days after it raised the prices of diesel, octane, petrol and kerosene by Tk20 per litre each.
Following the September 20 hike, diesel now sells for Tk135 per litre from Tk115, while octane for Tk165 from Tk145, petrol for Tk160 from Tk140 and kerosene Tk155 per litre from Tk135.
Traders at Shantinagar, Badda, Rampura and Malibagh markets said the higher fuel prices increased transport costs, which were being passed on to consumers.
Harun, a vegetable trader in Badda, said truck and pickup fares have increased by Tk2,000-5,000 per trip since the fuel price hike.
“Costs have risen both for bringing vegetables to the wholesale market and for carrying them from there to the retail markets,” he said.
Moslem, a vegetable seller at Rampura kitchen market, said the prices of vegetables have risen by at least Tk20 per kg over the past 10 days.
Round brinjal is selling at Tk150-180 per kg, depending on quality, compared to Tk80-120 before the fuel price hike. Yardlong beans now cost Tk120 per kg, up from Tk80, while ridge gourd, bitter gourd and pointed gourd are selling at Tk80-90, compared to Tk50-60 previously.
Meat prices have also increased. Beef is now selling at Tk850 per kg at Madhya Badda kitchen market, up from Tk800 a few days ago.
“Most of our cattle heads come from Kushtia, Jhenaidah, Jamalpur and Sirajganj. Truck fares from those areas have gone up by Tk5,000-6,000 per trip. We were forced to raise the price of beef,” said Saddam, a meat trader at the market.
Egg prices have also risen, with a dozen now selling at Tk160-170, compared to Tk120 in the first week of September. Traders attributed the increase mainly to higher transport costs.
Traders fear that prices could rise further if transport costs remain high, while consumers say the sudden increase has disrupted their household budgets.
Moinul Hasan, who works at a private bank, said: “On one hand, the salaries of government employees have been doubled under the new pay scale; on the other, fuel prices have been raised overnight. The entire burden has fallen on those who are not in government jobs.”
Firoza Rahman, a kindergarten teacher, said the fuel price hike increased costs across different areas of daily life, not just in kitchen markets. She said the pay rise for government employees, without a corresponding increase for private-sector workers, has created a serious disparity.
Agricultural economist and former Jahangirnagar University Vice-Chancellor Abdul Bayes said the full impact of the fuel price hike has yet to be felt.
“Higher diesel prices will raise irrigation costs for farmers by Tk10,000-20,000 per hectare. That will push up the prices of rice, pulses, wheat, everything,” he said.
Bayes warned that the increase in all fuel prices, coupled with an existing fertiliser shortage, could put further pressure on food prices.
The Consumers Association of Bangladesh (CAB) said some traders were exploiting the fuel price hike to pass unjustified costs on to consumers.
CAB President AHM Shafiquzzaman said the situation will deteriorate unless market monitoring is strengthened.
“We need to assess how much prices have actually gone up, how much of it is justified, and how much is being passed on to the market. There is no alternative to tightening monitoring,” he said.
Energy experts said the government was raising fuel prices under the existing pricing rules without adequately considering their impact on consumers, which could make the market more volatile.
M Shamsul Alam, energy adviser to CAB and dean of the Faculty of Engineering at Daffodil International University, said the government must first address weaknesses in its energy policy.
“If prices are raised abruptly without a sound energy policy, consumers suffer the negative impact, but when prices are reduced, they do not get the benefit,” he said.
