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Fuel price hike draws flak

BNP calls hartal for tomorrow; other parties, transport leaders vent anger

Staff Correspondent
The opposition, left-leaning political parties and transport owners protested the fuel price hike that became effective yesterday and the BNP-led 18-party alliance called a nationwide dawn-to-dusk hartal tomorrow.
BNP leader Tariqul Islam yesterday said, "Ignoring the demands of the people, the government has stubbornly and unilaterally decided to hike fuel prices forcing us to call the dawn-to-dusk hartal for January 6 (Sunday]."
Finance Minister AMA Muhith said the decision to call for hartal came from "madness” and that it could not have been a decision of a
responsible political party.
Hinting at the opposition BNP, he said the opposition knows how the government works as it had been in power in the past. He claimed the opposition was playing games.
Fuel prices in Bangladesh were far below than that on the international market, Muhith said, adding that fuel is smuggled to neighbouring countries because it is cheaper here.
He was talking to newsmen after attending the regional scout rally at Lakshmanaband of Golapganj in Sylhet yesterday.
Tariqul, meanwhile, claimed that the government hiked the price at a time when commotion of the previous increase was yet to die down.
He was speaking at a press briefing at the BNP central office in Nayapaltan yesterday after a secretary generallevel meeting of the 18-party alliance.
The meeting was called to discuss the alliance's course of action regarding the fuel price increase.
"Another anarchic situation is being created anew," he claimed, adding that they want to have a peaceful hartal and the government should refrain from provoking an anarchic situation.
On December 26, 2012, BNP Chairperson Khaleda Zia at a mass contact programme had said they would call for hartal if the government hiked fuel prices.
The government on Thursday increased prices of diesel and kerosene by Tk 7 a litre, and octane and petrol by Tk 5 a litre to reduce subsidy burden. Diesel and kerosene is nowTk 68 a litre, octane Tk 99 and petrol Tk 96 a litre.
This government's previous fuel price hike was on December 30, 2011. It had increased the prices in that year four times but did not hike them in 2010 and it had cut prices of kerosene and diesel by Tk 2 in January 2009.
Meanwhile, Debapriya Bhattacharya, a distinguished fellow of think-tank Centre for Policy Dialogue, yesterday said, "The increase in prices of fuel was not at all indispensable if we take note of the global oil prices, the current overall fiscal deficit and the political backdrop."
"The fiscal deficit is manageable," he told The Daily Star.
He said since the nonfood inflation was creeping, the hike would instigate the inflation further, which will have an impact on the economy.
The economist also said it was true that the price of diesel in India was higher than that in Bangladesh.
"But the price of diesel in India is not so high that it would induce illegal trading," he claimed.
"We should also appreciate the carrying cost of the economy and the ability of the poor people to shoulder the extra burden, as the two countries are different.
"The farmers and others in India also receive much more and bigger support than those in our country," he said.
He said the government had said that it increased the fuel prices for fiscal discipline.
"I will say that the fiscal discipline is quite okay. It just does not compel the government to raise the prices at this moment. The government is also saying that the money from the saving would go to development spending. I think the savings from the rise will have to be again reallocated in the agriculture sector."
The economist said the price hike was one of the compulsions for the government to get the third instalment of the $1 billion in budgetary support from the International Monetary Fund.
Yesterday, even ruling 14-party alliance member Workers Party of Bangladesh held a rally on the capital's Topkhana Road protesting the fuel-price hike.
Workers Party Politburo member Fazle Hossain Badsha said by increasing the fuel prices, the government had double-crossed the people who voted it to power.
Lawmaker Badsha said they would continue with their protest.
Meanwhile, Gonotantrik Bam Morcha, an alliance of some left-leaning parties, also decided to call for hartal to protest the hike.
The leaders of the alliance, however, were yet to decide on the date, said a press release of the alliance.
Other left-leaning parties demanded withdrawal of the government decision and threatened to go for tough programmes if the price hike was not cancelled.
Bangladesher Samajtantrik Dal in a statement said during the tenure of this government, the fuel prices were hiked five times and electricity price was increased six times.
It said people had already been suffering due to the extremely high house rent and transport cost and the recent fuel price hike would add to their woes.
Bangladesh Covered Van Truck Pannya Paribahan Malik Association at a meeting claimed that the price hike would lead the transport sector to decay.
The transport sector leaders said the hike created discontent among vehicle
owners, transport workers as well as people. It would make transportation of goods and passengers costly, they said.
Revolutionary Workers Party of Bangladesh in a statement called upon the people to unite and strengthen their protest until the government cancels withdraws the decision.