Not Again, Please

Energy ministry has apparently shaken off its lethargy to propose increases in prices of diesel and kerosene, once again. The proposed hike by 15 per cent or so is quite a substantial one. Needless to say, this new pricing, if accepted by the government, will have a far reaching effect on the economy and the commonman's life. It is also likely to push up the inflationary rate. The reasons put forward by the ministry do not sound very convincing with the familiar kind of bogey raised about the BPC (Bangladesh Petroleum Corporation) going into huge losses unless prices are increased. The same excuse was offered in 1997 when octane and petrol prices were substantially raised. The question of diesel and kerosene being smuggled into India because of the price disparity, is an affront to the Bangladesh Rifles who are responsible for guarding the borders. Diesel and kerosene are not such items as can be taken out of the country on bicycle or bullock carts. Lorries, barges and tankers are needed to carry fuel in large quantities which should not be possible along a well guarded border. International prices may have risen in recent months to warrant some sort of readjustment in the prices now but did the government keep its pledge for reducing prices of fuel when it had come down to 10 dollars a barrel in the international market?

Diesel and kerosene are used in such huge quantities every day that even a nominal rise can generate extra revenue for the government. We hardly find any rationale for a huge hike in the prices of diesel and kerosene to absolve the BPC from its management failure and the government from its poor financial management and revenue collection situation.