The New Nation - Internet Edition

THE Government has refixed the price of Compressed Natural Gas (CNG) with effect from 24th April. The earlier price per cubic metre of CNG was Tk. 8.50 which was fixed in mid -June of 2005. The price has been refixed at Tk. 16.75, that is a hike of more than 100 per cent. In 2005 the price of a litre of octane was Tk. 35. Its price has risen to Tk. 67. Petro Bangla has been sustaining losses. International hike of price of petroleum has burdened the corporation much. Therefore, a refixation of price of CNG could logically be thought of. But refixation by doubling the price is not considered rational at a time when the poor and middle income sections of the people are hard pressed by the unusual rise of prices of essentials.

The government has said that to reduce the loss incurred by Petro Bangla the government had to refix the price of CNG. Even if the government's point is accepted the rise of price by 100 per cent may not significantly reduce the loss of Petro Bangla. CNG was introduced as fuel for vehicles since 1980s as a cheap and easily available alternative. Nearly 1.25 lakh vehicles of Dhaka city have been turned to CNG. Now either on an argument of rising price of octane or lowering the loss of Petro Bangla doubling the price of CNG goes against the premise on which it was introduced. Similarly, if tackling of loss of Petro Bangla is the target doubling the price is not necessary.

The government has announced that the private transport companies will not be allowed to raise their fare or freight. But many of them have already done it from 24 April. The government should also keep in mind the fact that the cost of increased fare would ultimately have to be borne by the poor people.