State Minister for Power and Energy Iqbal Hasan Mahmud has described the recent price adjustment in the country as ‘necessary’ in the context of rising fuel prices in the international market .
Speaking to reporters at the capital’s secretariat, he said that despite the nearly doubling of oil prices in the global market, the government has made relatively limited price adjustments.
The minister said that the government’s expenditure on fuel imports has increased significantly due to recent international instability, especially the Middle East-centric tensions. It has to bear an additional cost of about two billion dollars, which is putting additional pressure on the country’s economy. He also mentioned that maintaining the previous price with full subsidy was not realistic in this situation.
Highlighting the government’s position, he said that the government itself is still bearing a large part of the price increase through subsidies, so that the pressure on ordinary consumers can be limited. In his words, “Keeping in mind the issue of people’s comfort, prices have been increased at a much lower rate compared to the situation.”
Analysts say that if the global market volatility persists, the country’s energy policy may need further adjustments. However, for now, the government is moving forward with a strategy to stabilize the market by continuing subsidies.