Commerce Minister Khandakar Abdul Muktadir on Friday said the recent fuel price hike will have only a minimal impact on inflation, assuring that the government will manage the situation to protect consumers.
“The diesel price has increased by 15 percent. This slight increase may raise commodity prices by around Tk 0.30 per kilogram, which will not have any major negative impact on overall inflation,” he said.
Muktadir, who also oversees the Ministries of Industries, and Textiles and Jute, was speaking to journalists after inspecting preparations for the excavation of the historic Basia canal at Masukganj Bazar in Sylhet Sadar upazila.
He also said Prime Minister Tarique Rahman is expected to inaugurate the canal re-excavation project on May 2.
The minister said though fuel is being imported at higher prices from the international market, the impact on the public will be minimal as the government will manage it effectively.
He said even after the hike, the fuel prices are much lower in Bangladesh compared to neighbouring countries.
Addressing growing load-shedding in Sylhet, Muktadir said the current government, which assumed office only two months ago, inherited various irregularities and is working to resolve them.
He said Bangladesh still relies heavily on gas for power generation. “While the country produces around 17 million cubic feet of gas, an additional 9 million cubic feet must be imported to meet demand.”
However, technical challenges have hindered adequate gas imports, contributing to increased load-shedding, the minister said, expressing optimism that the situation will improve soon.
He also said the government is working to expand LNG import capacity by inviting tenders for new terminals.
On fuel imports from Saudi Arabia at higher prices, Muktadir said the government is prioritising boosting reserves to ensure energy security and plans to build new storage facilities to reduce vulnerability to global market volatility.
The Basia canal project will cover 23 kilometres of the 40-kilometre canal, stretching from Masukganj in Sylhet Sadar to Jagannathpur in Sunamganj via Osmaninagar.
The minister said the project is expected to benefit around 90,000 farmers and enable additional crop production on nearly 20,000 hectares of land by ensuring irrigation during the dry season.
State Minister for Water Resources Forhad Hossain Azad, two local MPs, Sylhet City Corporation administrator and deputy commissioner were, among others, present.
MSH
