Fuel price hike will not significantly impact inflation: Minister

Commerce and Industries Minister Khandakar Abdul Muktadir has said that the recent increase in fuel prices will not have much impact on inflation.

Speaking to journalists today (24 April) while visiting Masukganj Market in Sylhet Sadar upazila, the minister said diesel prices have increased by only 15%.

He noted that fuel prices in neighbouring countries are higher than in Bangladesh, and that the government raised prices cautiously to ensure that the public does not face excessive pressure.

Muktadir explained that the increase would have only a minimal effect on commodity prices.

“If a truck transports goods over a distance of 200 kilometres, the price per kilometer may rise by around 30 paisa. This level of increase will not have a real impact on overall inflation,” he said.

The minister added that although fuel is being imported at higher prices, the government will try to tackle the situation so that the burden does not fall on ordinary people.

Basia canal excavation project

Later, Abdul Muktadir visited the area to inspect preparations for the excavation of the Basia canal, which is scheduled to be inaugurated on 2 May by Prime Minister Tarique Rahman.

He said the canal has a total length of 40 kilometres, of which 23 kilometres will be excavated.

The work will begin from Masukganj Market in Sylhet Sadar, pass through Osmaninagar upazila, and extend to Jagannathpur in Sunamganj district.

According to the minister, around 90,000 farmers will benefit from the project. In addition, improved irrigation during the dry season will allow increased crop production on nearly 20,000 hectares of land.

Load-shedding and energy challenges

Responding to a question about increased load-shedding in Sylhet, Muktadir said the government has been in office for only two months and has inherited multiple problems and irregularities.

He said, “Bangladesh’s electricity generation remains heavily dependent on gas. Currently, about 17 million cubic feet of gas is produced domestically, while around 9 million cubic feet must be imported. However, despite financial capacity, various constraints have made it difficult to import gas according to demand, leading to increased load-shedding.”

He added that the government is working to resolve the issue.