The latest price hike of compressed natural gas has created a chaotic situation in the country’s transport sector and kitchen markets.
In a litany of reactions, CNG-driven buses, pick-ups, and auto-rickshaws have increased fares, rickshaw-pullers used that as an excuse for doubling their asking rate, rickshaw vans followed the suit of rickshaw-pullers, and vegetable vendors raised prices on the ground of increased transport cost.
It is a chain reaction set off by the government’s decision to swell its coffers by a whopping 50 per cent price hike of compressed natural gas, said Aminur Rahman, a member of the middle-income group, adding that his salary had not increased overnight like the prices of essential commodities.
Bangladesh Institute Development Studies research director Zayed Bakht told New Age that the price hike of CNG would have deep impact on the economy through a rise in transport fare and consecutively in the essential commodity prices. The people of the lower- and middle-income groups will have to bear the brunt of the decision, he added.
‘This will increase the rate of inflation, which has already emerged as a key challenge for the government. All in all, the government will find it tough to manage the macro-economy,’ he said.
From Friday morning, bus conductors and CNG-driven auto-rickshaw drivers have started to extort fares doubled overnight from passengers, who in some places of Dhaka and Chittagong were assaulted by transport workers during altercations over the sudden fare spike.
Association of Bus Companies president Rafiqul Islam told New Age that, under the circumstances, they had nothing to do as the transport businessmen had to pay one and a half times more than before for CNG.
Asked about the onset of anarchy in the transport sector that was infecting the essential commodity market, communications minister Syed Abul Hossain told New Age that he would try to arrange a meeting with the stakeholders to settle the transport fare issue.
Bangladesh Energy Regulatory Commission increased the price of compressed natural gas from Tk 16.75 to Tk 25 a cubic metre with effect from Thursday midnight.
The commission in its order remarked that the government would now earn Tk 2,038 crore in proceeds from CNG sales a year, Tk 1,121 crore more than that in last year.
Explaining the reason for going for such a high jump in the CNG price, the commission chair, Yusuf
Hossain, on Thursday said the commission had found that the rich were the main beneficiaries of CNG being a cheap fuel for vehicles.
Zayed Bakht found it as an attempt of the government to accumulate some additional revenue before it declared the budget 2011/12 since it was running with a budgetary deficit.
Terming the 50 per cent price hike of CNG huge, Zayed said the decision was ‘unwise’. ‘The government could increase the CNG price gradually to reduce the impact on the general people,’ he said.
Bangladesh CNG Filling Station and Conversion Workshop Owners’ Association general secretary Zakir Hossain said the commission’s decision did not reflect the opinions 14 stakeholders had given in a public hearing on the Petrobangla’s proposal for increasing the price of CNG.
He dismissed the decision as the commission did not give time to the disgruntled parties for making an appeal to the higher courts to get ‘justice’, because the commission ruled that the decision would be implemented within seven hours of its announcement.
Yusuf, however, kept mum on the possible effects of the price hike on the people who have to use three-wheelers and public buses for transportation.
Asked about the impacts of the CNG price increase on public transports, Yusuf said it was not for them to look into.
Rafiqul Islam said the Association of Bus Companies would propose that the communications ministry should increase bus fare from Tk 1.20 to Tk 2.55 per kilometre.
Courtesy of New Age
