In the wake of fuel price hike in the country, The Daily Star spoke to Nasrul Hamid, state minister for power, energy and mineral resources, to discuss the situation.
While lower fuel cost may keep the cost of driving low and the opportunity cost of conservation high, the setback is predicted to be temporary.
The minister of finance has sought the opinion of the ministry of energy on how to revise prices of petroleum downwards.
As per a projection put forward recently by the country's leading think-tank, the Centre for Policy Dialogue (CPD), we find that a 10 percent reduction in fuel prices could propel the country's GDP growth rate by 0.3 percent, or in dollar terms, nearly $5.2 billion; raise its export earnings by another 0.4 percent and household consumption by about 0.6 percent.
The oil price falls below $28 a barrel amid fears the lifting of Western sanctions on Iran could worsen the existing oversupply problem.
The logic being offered by the government for not adjusting the oil price in the country with the international price is that the BPC is making up for the huge 'losses' it has run up over the years.
While maxi-oil wars are playing out in the Middle East and North Africa we have our mini version of an oil battle to be won at home.