Retailers hike diesel price as supply falls

Consumers in many parts of the country are forced to pay more than the government-fixed price for diesel, as retailers have hiked its price taking advantage of supply disruptions due to the ongoing blockade.  

End users, especially rice and vegetable growers, in at least 25 districts face diesel shortage, as the blockade continues to hamper supplies to retailers.

Districts in Rajshahi and Sylhet divisions as well as remote and border areas have been the worst hit since the BNP-led alliance's blockade began nearly two weeks ago.

In the northern region, Rajshahi, Kurigram, Gaibandha, Natore, Naogaon, Bogra and Lalmonirhat experience fuel shortage, as supplies from the regional distribution centre at Baghabari in Sirajganj are not reaching fuel stations in those districts.

Sylhet is also not getting adequate supplies because of disruption in train communication, as all supplies to the region are carried through the rail network.

"There is enough stock in government depots. But fuel can't be supplied to the retailers," said Mohammad Nazmul Hoque, president of Bangladesh Dealers, Distributors, Agents and Petrol Pump Owners' Association.

However, Dhaka and Chittagong are not facing any disruption in supply, he said.

But much to the worries of farmers, diesel prices went up in many districts in the last two days.

Yesterday, diesel was sold for Tk 75 a litre against its fixed price of Tk 68 in Lalmonirhat sadar and nearby upazilas. It costs Tk 5 more a litre in remote areas such as Patgram, a border upazila. 

In Lalmonirhat sadar, most consumers had to return empty handed, as petrol pumps in the area didn't get supplies from government depots since yesterday morning.

Farmers in remote areas are left with no option but to buy diesel at higher prices.

Babu Sarker, a vegetable grower in Shibganj of Bogra, bought four litres of diesel at Tk 72 each on Friday to run a water pump for his potato field.

A couple of days back, he bought the fuel for Tk 70 a litre.

The price hike dealt a double blow to local farmers, as prices of their produce dropped sharply with the blockade disrupting shipment of goods to Dhaka and other districts.

“On the one hand, we are losing due to falling prices of the produce. On the other hand, prices of production inputs are rising. Nobody cares about farmers,” said Babu.

Abdul Kalam, a farmer at Dharanipur of Kurigram, said rice production costs would go up due to the hike in diesel price. 

“But I am not sure whether I will get a good price after the harvest.  Aman prices have already dropped at local bazars due to the non-stop blockade,” said Kalam.

Another farmer, Bakul Mia, said traders are selling diesel at Tk 72 a litre in Netrakona.

He now has to spend Tk 288 instead of Tk 272 to prepare each acre of land by using a power tiller.

The price spiral comes at a time when farmers prepare to grow Boro that accounts for 55 percent of the country's annual rice output.

During this period, demand for diesel rises as farmers use power tillers and tractors to prepare lands, and then irrigate paddy fields.

Mir Ali Reza, director of marketing at state-run Bangladesh Petroleum Corporation, said the existing stock in oil depots is satisfactory.

"The situation is not alarming. Whenever there is a temporary shortage in any place, we send supplies there from the stock in nearby depots. If necessary, we take help from the local administration and police," he added.

Bogra, Lalmonirhat and Kurigram correspondents contributed to this report