Home Bangladesh Industries fearing shut for fuel price hike
Bangladesh - Bank & Finance - August 6, 2022

Industries fearing shut for fuel price hike

Special Correspondent: Due to increase in the price of fuel oil, there has been instability in the transport sector. The entrepreneurs of the ready-made clothing sector say, as a result, the production cost of the factory will increase, many factories will not be able to provide shipment on time. The workers will raise the demand for salary increase. This will lead to the closure of many factories. Leaders of BGMEA and BKMEA, two organizations of the garment sector, made the same comment.
Leaders of BGMEA and BKMEA, two organizations of the garment sector, made the same comment. Concerned people fear that the increase in the price of fuel will have an impact on every sector of the economy.
Entrepreneurs are seeing the increase in fuel prices in the country’s market as an ominous sign. They think that many factories may be closed. However, the biggest concern is the garment sector, which accounts for 82 percent of export earnings.
In this regard, a director of BKMEA said that due to the increase in the price of fuel, the transport fare will increase at a higher rate. It will increase the cost of other things. The prices of daily commodities may go beyond the reach of common people. The workers will raise their demands to increase their wages. Many factories may have to go out of business.
BGMEA director Mohiuddin Rubel said, we were already suffering due to load shedding. Then the price of fuel increased. In fact, the energy problem is now global. Our expenses have also increased. All together we have to adjust to everything now.
Shahidullah Azim, vice president of BGMEA, said that the increase in fuel prices will affect all sectors of the economy. The cost of imported goods will increase, the cost of our garment factories will increase. Transportation costs will increase more than before. It will reduce product production. The factories will not be able to deliver the goods on time. The garment industry entrepreneur fears that many factories will be closed due to this.
On Friday (August 5) night, the government announced an increase in fuel prices. The price hike comes at a time when global oil prices are at a 5-month low. In the country, fuel has increased from Tk 34 to Tk 46, now diesel is sold at Tk 114 per liter, kerosene at Tk 114, octane at Tk 135 and petrol at Tk 130 per liter. Earlier, the retail oil price at the consumer level was Tk 80 per liter of diesel, Tk 80 of kerosene, Tk 89 of octane and Tk 86 of petrol.
According to news agency Reuters, the price of crude oil benchmark Brent crude rose 80 cents to US$94.92 per barrel last Friday, which is 11 percent lower than the previous Friday. In addition, the price of West Texas Intermediate (WTI) in the United States increased by 47 cents to $89.01 dollars per barrel, which is eight percent less than the previous week.
Earlier, Brent fell 2.75 percent to $94.12 a barrel on Thursday, the lowest since February 21. And WTI fell 2.3 percent to $88.54, the lowest since February 3.

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