Bangladesh hikes fuel prices by 50%, highest since its independence in 1971

Dhaka, Aug 06: In a major shock to the citizens, the Bangladesh government increased the price of fuel by 50 per cent, local media reports

In fact, the new price is the highest since the country's independence in 1971.

On Friday, the Bangladeshi government increased the fuel prices by up to 51.7 per cent and it comes to effect from Saturday.

According to a price notification from the Ministry of Power, Energy and Mineral Resources, a litre of octane now costs 135 taka (1.43 USD), which is 51.7 per cent higher than the previous rate of 89 taka (0.94 USD), as per a report.

Bangladesh Petroleum Corporation (BPC) in a statement had counted a loss of Tk 8,014.51 from February to July by selling fuel at low prices, The Daily Star reported.

The Russia-Ukraine war and the COVID-19 pandemic have impacted fuel prices globally. Russia is the largest exporter of oil and gas to global markets, and the retaliatory sanctions that followed have caused gas and oil prices to gallop with astounding ferocity. The spike in energy prices was a major reason the World Bank revised its economic forecast in June, estimating that global growth will slow even more than expected, to 2.9 per cent this year.

In video clips doing rounds on social media sites, thousands were seen crowding the filling stations and jostling to get their vehicle tanks filled.

Meanwhile, several filling stations in Dhaka's Mohammadpur, Agargaon, Malibagh, and other areas reportedly suspended their operations after the news broke, declaring their sales would resume after midnight when the new prices would come into effect, Dhaka Tribune reported.