Case for lowering oil prices
Despite the Finance Minister's verbal indication that oil prices will be lowered in a matter of weeks, we see an apparently negative approach taken by high officials of the government who are opposing the idea of reducing fuel prices, arguing that the BPC still has a huge debt and other liabilities.
We find the government's inaction in lowering oil prices despite a more-than-fifty-percent fall in prices in the international market absurd, tantamounting to extortion. Some energy experts have made the point that the BPC will still make good profit if it sells octane at Tk 50 per litre, 50 percent down from the current selling price.
Bangladesh Petroleum Corporation (BPC), the sole oil importing government agency, is making bumper profits by selling Octane at the same Tk 99 per litre although global oil prices per barrel have flattened out at around USD 40-45 from a stiff $110 a barrel last year. The consumers are feeling the pinch and it's about time they got a relief. If the government is in any business then it must be conducted keeping public interest uppermost in their mind. The public sector simply cannot run like profit-maximising enterprises taking advantage of a monopolistic market.
Instead of utilising the opportunity to reduce dependence on subsidy, BPC is trying to extract money from the consumers rather exploitatively. At this point we urge the government to intervene immediately to cut fuel prices, which the Finance Minister hinted at last week.
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