Benefit by reducing the price of oil

The driver of this bus. Robin said that the price of diesel had increased by 34 taka per litre. Reduced by Rs. How much rent can be reduced?

Such arguments between passengers and drivers and assistants were seen on Tuesday morning in several transports running in the capital. Last Monday night, it was decided to reduce the price of diesel, octane, petrol and kerosene by 5 rupees per liter. Since then, discussions have started between the government and opposition political parties, social media, professionals, economists and energy experts. 

Many people said through social media that it is ridiculous to reduce the price of fuel oil by only 5 rupees. Some of the politicians said, it is mockery with the people. Some of the economists see this initiative as 'good' even if there is no big benefit from this reduction. It is being said by the government that this is an indication of further price reduction in the future.

"The fact that the price of fuel is reduced by 5 rupees, will the transport fare be reduced? It does not seem to have any positive impact on general passenger and goods transport"

Consumers Association of Bangladesh (CAB) President Golam Rahman

Last Sunday, the import duty on diesel was reduced from 10 percent to 5 percent. And 5 percent advance tax is withdrawn. The decision to reduce the price of fuel came the next day. Just 23 days before this, on the night of August 5, diesel and kerosene prices were increased by Tk 34 per liter and petrol and octane by Tk 46. After that the transport fare increased by a maximum of 22 percent. Earlier, the price of diesel and kerosene was increased by Tk 15 per liter last November. At that time also the transport fare was increased by about 27 percent.

By reducing the duty, the price of fuel has been reduced to 5 rupees, the work of reducing the duty could have been done earlier. Golam Rahman, president of consumer rights organization Consumers Association of Bangladesh (CAB), thinks that the suffering of people will be reduced to some extent. Last night he told that the government could have taken the decision to reduce the duty. This decision was taken when the fare of public transport increased, the price of daily commodities increased, the cost of people increased several times. Therefore, the decision to reduce the price of fuel oil by 5 taka per liter may not be of much use to the consumer.

Golam Rahman does not think that there will be any benefit in this decision. He said, 'The fact that the price of fuel is reduced by 5 rupees, will the fare of transport be reduced? It does not seem to have any positive effect on general passenger and goods transport. 

But the transport owners say that they will reduce the fare after the government's decision.

Last night I spoke with Secretary General of Bangladesh Road Transport Owners Association Khandkar Enayet Uliah. He said that, 'We have said from the beginning that when the price goes down, we will go down. Now the price of oil has come down, we will reduce the price accordingly.'

"It grew in unison, I wouldn't say it was very consistent. Now it started to decrease slowly. I believe it will decrease further. A little less, it's better than bad"

Planning Minister MA Mannan

It has almost become a tradition here that as soon as the price increase is announced, the bus charges the extra fare. But if the price falls, its reflection is not seen quickly. Bringing up this topic, Enayet Ullah said, 'North Bengal buses are still charging less than the additional fare. After the price increase in Dhaka, the decision was made and then the price was increased. We cannot decide alone. We will sit with BRTA. After that the price will be reduced considering the price of oil.'

According to Cab Chairman Golam Rahman, the huge increase in the price of fuel and the reduction of the price to just 5 rupees actually caused damage to both parties. He said, as a result of this, the revenue of the government will decrease on the one hand, and the suffering of the people will not decrease. And he thinks that the decision to reduce the duty after so long is an expression of the government's indecision.

However, Planning Minister MA Mannan does not think that there is any indecision in the government. According to him, the government is not a single person. There are many different ways. Decisions are made after considering all aspects. However, the minister feels that it would have been better if the duty was reduced earlier.

MA Mannan said, 'It grew in unison, I wouldn't say it was very coherent. Now it started to decrease slowly. I believe it will decrease further. Even if it's reduced a little, it's better than bad.'

The government is understanding the people's suffering - the government sent this message by reducing the prices a little, thinks the planning minister.

M Tamim, Special Assistant to the Chief Advisor of the former Caretaker Government on Energy, told that the issue of price reduction may be a political decision. But there is no justification for reducing the price by 5 taka, at least 10 taka could have been reduced. Transport owners will not reduce fares. The extra money will go into the traders' pockets; There will be no political advantage to the government.

However, the opposition political parties have strongly criticized the initiative of the government. Mahmudur Rahman Manna, the president of Nagorika Oikya, said, 'It is cow killing and shoeing.'

Manna said in a statement yesterday that the government wants to do business with government institutions without increasing subsidies for the people. It is a joke with the people. This is because the government does not have enough money and dollars.

Ruhin Hossain, general secretary of the Communist Party of Bangladesh, told that it is not clear whether it was a kind of joke with the people or not. The rate at which prices rose, did not fall. It can never be acceptable. I want to see if there is any reflection of the decrease.

Beyond this political argument and counter-argument in the field, that is, will there be any positive impact on agriculture by reducing the price of fuel? Irrigation uses diesel. Now is the season of Aman. It is the second largest crop in the country. But the year is very rainy. Rainfall in Shravan is record low. It didn't rain that much in Bhadra.

It has been observed so far that more irrigation is required during December boro. Barring the Barendra area of ​​Rajshahi, almost everywhere in the country had very little irrigation. But this time the situation is completely different. Emeritus Professor and former Vice-Chancellor of Bangladesh Agricultural University MA Sattar Mandal believes that almost 100% irrigation will be needed in Aman this time. Talked to him on Tuesday morning. He is now in Faridpur, his village home. Seeing the movement of agriculture there.

Professor MA Sattar Mandal was saying that the reduction of 5 rupees in diesel will not save the farmer much. By increasing the price of oil by 34 taka, the cost of irrigation will be about 10 thousand taka more. How much profit will be made by reducing 5 rupees there. It does not seem to have any positive effect.

Professor Sattar Mondal suggested further reduction in the price of diesel used only for agriculture if we want real good for agriculture.

Dhaka University economics professor Salim Raihan is skeptical about whether the transport cost of goods will be reduced at all by reducing the price by Tk 5. He does not think that reducing the prices will not reduce the price of daily commodities or the suffering of people. However, he thinks this initiative to reduce the price even if it is 5 taka is a good sign. Salim Raihan said, he could have reduced it at a higher rate than this time. He thinks that it did not happen due to the lack of courage required for this. But his words, 'I think it is a sign of good judgment. I think or want to be optimistic, the government will further reduce the price of oil in the next two-three weeks.'