The New Nation - Internet Edition

Shamim Jahangir

People are unlikely to get benefit of the reduction in fuel prices if the government fails to take effective measure to decrease transport fare and ensure diesel supply to the farmers, according to economists.

Eminent Economist Prof Atiur Rahman told the New Nation that the Government should take initiative to reduce the transport fares through negotiation with the transport owners association before reduction of diesel and kerosene prices.

He called upon the consumer association leaders to prevail on the government for ensuring consumers right through decrease in transport fares and commodity prices before reduction of fuel price.

"Farmers will get benefit from the government decision to reduce fuel prices. For this, the government should ensure supply of diesel to the farmers during the Boro season," Prof Atiur said.

He termed the government decision a 'new trend' in the country and said it is the first ever decision to reduce fuel prices.

Economist Prof Abu Ahmed of Dhaka University said reduction in fuel prices would have no impact on the national economy.

Explaining he said the government only takes decision either to increase or decrease of commodity, but it can't ensure how its steps benefit the common people or affect them adversely. Mainly the middlemen often reap the benefit of the government's decision, he noted.

Economist Prof Anu Muhammed of Jahangirnagar University said that the consumers will not get any benefit of the fuel price reduction due to poor monitoring system of the government.

He laid stress on strong monitoring system after implementation of the decision to reduce the prices of diesel and kerosene for enabling the common people of getting its benefits, he said.

The government is likely to decrease the price of diesel and kerosene by around 9 per cent and of octane and petrol by around 5-6 per cent this month, according to sources.

The price of crude oil was around $141 per barrel when the government increased the price of diesel and kerosene to Tk 55 per litre from Tk 40 and octane to Tk 90 from Tk 67 and petrol to Tk 87 from Tk 65 on July 1 last. The government is considering reduction of diesel and kerosene prices as the oil price in international market has come down sharply during the last month.