Finance minister will do something for people to be hit by energy price hike

Finance minister AHM Mustafa Kamal has said he would take ‘necessary measures’ for the people who would be affected by gas, power and fertiliser prices hike, if any.

“Our government is the government of the people. We have been moving together with all the people of this country,” finance minister told reporters on Sunday while responding to a question on the possible impact of a fresh government move to raise gas, fertiliser and electricity prices.

The upward price adjustments were being previously discussed amid the Covid-19 pandemic when a good number of people are earning less and living a somewhat less-than-moderate life.

The minister’s remarks came after a virtual cabinet committee meeting on the public purchase and economic affairs.

Kamal also said, “I think the (smooth) livelihood of people will never be interrupted. Our country will move forward with everyone, inshallah.”

The finance minister said, “I have not taken any initiative to increase the prices from here (my office). I do not know yet.” I will be able to experience it when I know the matter. I will definitely know about this, I will take action when I know. I must do what I have to do,” he asserted.

Last November, the finance minister had said the government is feeling a mounting subsidy pressure while importing fuel oils that led them to raise the prices of diesel and kerosene.

He believes the fuel price hike was “totally logical”.   

“For how long will the government keep giving subsidies? The consumers should share some because the government has to spend after earning revenue,” he pointed out.

The government increased the fuel oil prices by 23 percent last November, citing volatility in the global market. The price hike had a spiral effect on the transportation cost, ending at the consumer level.

The state-owned gas distributors have recently proposed raising retail gas prices by up to around 100%.

The subsidies for gas, electricity and fertilisers will stand at Tk 70,000 crore in FY22, while the amount allocated in the current budget is only Tk 21,600 crore.