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a question from independent MP Rumeen Farhana, saying it is important to understand why inflation is unlikely to rise significantly.

He said that compared to the global surge in fuel prices, Bangladesh’s increase has been relatively moderate.

“For example, diesel has gone from Tk 100 to Tk 115 per litre. In an industrial plant, fuel accounts for about 7-8 percent of production costs. If the price of diesel rises by 15 percent, the impact on overall costs remains minimal,” he explained.

He added that in the transport sector, a bus covering 200 kilometres consumes around 25-30 litres of diesel. “The extra cost of about Tk 450 for those 30 litres, when spread across 10,000 kilograms of goods in a truck, adds only a negligible burden per unit,” he said.

“This means that while fuel prices have risen, the effect on inflation is not as dramatic as it may seem. The economy’s fundamental balance remains intact. Like other countries, Bangladesh has adopted a moderate policy, keeping the increase modest,” he added.

The minister also noted that in the United States, fuel prices vary from state to state due to local taxes. Before the war in the Middle East, many US states had fuel prices around $2.70-$2.80 per gallon, which later rose to over $5.

He further said that, compared with neighbouring countries and similar economies, petroleum prices have risen more sharply elsewhere, adding that in many countries fuel prices are adjusted automatically without requiring direct government intervention.