No immediate plans to hike fuel prices: M Tamim

Dhaka, Feb 13 (bdprem.com) – The chief adviser's special assistant M Tamim has said the government does not have immediate plans to hike fuel prices. Your Ad Here "We are not thinking of hiking fuel prices for the time being," Tamim, who oversees the Energy and Mineral Resources Division, told bdprem.com Wednesday by phone. The assurance came a day after the Asian Development Bank said it wanted Bangladesh to increase the prices of oil, gas and electricity to cut subsidies to the energy sector. After a meeting with finance adviser AB Mirza Azizul Islam Tuesday, ADB's resident mission chief Hua Du said it was up to the government how much and when it would adjust the prices. Tamim said: "Fuel subsidy cannot continue the way it does now. We have to think about the sectors deserving subsidies, agriculture in particular, and those who use kerosene so that a price hike cannot affect them." According to a government estimate, Bangladesh pays Tk 5,000 crore in subsidy to the energy sector on average a year. This year, the amount is likely to increase to Tk 7,000 crore. Experts in an analysis titled "Oil Price Rise and Its Macroeconomic Effect: Bangladesh Perspective" recommended a withdrawal of subsidies on fuel in phases. Two senior officials—one of the finance ministry and the other of the energy ministry—made the analysis report. Hua Du said the government should increase the prices to ease the pressure on the economy, mounted by huge energy subsidies.