It is, though not unprecedent, saddening that the fuel price hike by Tk.20 per litre has triggered an exponential impact in multiple sectors, in some cases, in unreasonable way. We understand that a small change in fuel price can create a domino effect; for example, a truck transporting fruits from Jashore to Dhaka will charge a higher cargo rate. The wholesale trade will absorb the cost and pass it on through the supply chain. By the time the fruits reach the final consumer, the modest fuel cost has grown dramatically. However, it does not mean the prices should be increased arbitrarily.
These transport operators and retailers use psychological pretext to increase prices beyond their actual overhead. For example, if fuel costs rise by 17.4 per cent, it is ridiculous when transport fares and food costs illogically increase by 30 per cent. Besides these, buses raised their price by 17 paisa. Long-route buses are even demanding Tk.50 to Tk.100 per ticket.
Such asymmetric pricing creates an unnecessary burden on people, particularly low- and middle-income households. Typically, low- and middle-income households spend the maximum portion on daily commuting and food. When prices increase concurrently, it immediately impacts the cost of living, making the pressure feel inescapable.
To prevent a necessary fiscal adjustment from spiralling into an inflationary crisis, the government must take necessary steps to stabilise the market. Bangladesh Road Transport Authority must publish exact fare adjustments, and illogical increases should be penalised. Directorate of National Consumer Rights Protection must maintain a continuous and visible presence at wholesale hubs to break the artificial price-fixing by middlemen who typically exploit fuel news.
Typically, a fuel hike, no matter how modest, will bring economic pain; however, it should not grant a license to market exploitation. By applying strict policies and monitoring the market, the government must ensure that a Tk.20 price hike induces a manageable shift instead of an inflationary shockwave for citizens.