Road Transport and Bridges and Shipping Minister Shaikh Rabiul Alam has said the prices of all types of fuel were increased with the decision taken in consideration of the growing subsidy burden and risks of smuggling.
Speaking at a Bangladesh Inland Water Transport Authority (BIWTA) event in the capital’s Mohammadpur, the minister said on Saturday that prolonged fuel supply at prices lower than the international market had significantly increased subsidy pressure.
“Supplying fuel at lower prices than the international market for a long time increased the subsidy burden. At the same time, considering the risk of smuggling, prices have been adjusted to a limited extent,” he said.
He, however, claimed that there was no pressure from the International Monetary Fund (IMF) behind the decision.
The minister said fares for diesel-run transport have already been adjusted in line with the new fuel prices, while fares for gas-run vehicles will remain unchanged.
“There is no scope to increase fares for gas-run vehicles,” he said.
Rabiul Alam also highlighted plans to introduce a regular and transparent mechanism for fare determination, under which transport fares will be automatically adjusted in line with fluctuations in international oil prices.
He said the system would not require separate decisions for implementation, as fares would take effect once the Bangladesh Road Transport Authority (BRTA) issues a notification.
The minister also spoke about plans to control autorickshaws to ease traffic congestion in the capital, saying steps are underway to gradually restrict their movement on major roads.
“Preparations are underway to limit these vehicles on main roads in phases, and discussions with the relevant stakeholders are ongoing,” he added.
