Dilemma over oil pricing

ACCORDING to a report published yesterday in a leading Bangla daily, price per litre of diesel and furnace oil stood at Tk.44 and Tk.28 respectively as per last week's price of oil per barrel in the international market. Yet, prices remain stagnant in the country for these two types of oil at Tk.66 and Tk.60 respectively. Apparently, authorities have decided to watch the market for the next six months before adjusting the prices. In the meantime, consumers both at industrial and private levels will continue to pay these inflated prices. Despite indications that the depressed state of prices will not be rising anytime soon, we would like to ask as to the rationale behind BPC's support for inaction.

Had prices been brought down, it would have ushered in a reduction in cost of production – agricultural and industrial, lowering of electricity prices and mass transportation costs. The age old fear that lowering of price would precipitate cross-border smuggling of oil is a matter of law enforcement. A failure to check this is hardly any excuse for not readjusting oil prices downward. A reduction in transportation costs would bring down the prices of tickets commuters pay to get from Point A to Point B or beyond. Lower diesel price per litre would save farmers money to fire up their generators and that would be reflected in wholesale and retail pricing of produce reaching end consumers. Perhaps authorities need to revisit their position on the price of oils for the common good.