Staff Reporter:
Finance and Planning Minister Amir Khasru Mahmud Chowdhury yesterday clarified that the adjustment in domestic fuel prices was necessitated by international market volatility rather than conditions set by the International Monetary Fund (IMF).
“The Bangladesh government delayed increasing prices as long as possible to protect the interests of its citizens, despite facing pressure as national funds were being depleted,” he said.
The minister made these remarks while talking to reporters at the Ministry of Finance in the city.
Amir Khasru Mahmud emphasized that oil prices have surged worldwide, citing examples that prices doubled in the United States and rose by 25% in Sri Lanka.
The minister categorically said that there is no relationship between the IMF and the decision to raise fuel prices.
He explained that the decision was made independently to manage the upcoming budget and alleviate the immense pressure on the national treasury.
“We have increased it by a very negligible amount compared to the rest of the world,” the minister re-marked, adding that the adjustment was crucial to keeping other economic programs running.
Regarding the status of loans and cooperation, he described the discussions with the IMF, World Bank, and Asian Development Bank (ADB) as an ongoing process.
The minister stressed that as a democratically elected government, the administration is bound by its promises to the people.
He asserted that the government would not accept any conditions that create undue pressure on the public or the business community.
“We will not take any decision that hinders the protection of public interests,” he said, noting that the current program with the IMF was initiated under a previous administration and will conclude in six to seven months.
Addressing concerns over inflation, the Minister suggested that while oil prices are a factor, they are only a small part of the overall economic basket.
He argued that inflation is heavily dependent on supply and demand dynamics.
By maintaining adequate oil reserves and ensuring a steady supply, he said, the government aims to mit-igate the impact on the public.
The minister expressed confidence in continued international support, noting that heads of the World Bank and ADB are scheduled to visit Bangladesh.
