The fares of various road and water transports increased in different places across the country, including the capital, on Sunday along with the impact on kitchen markets after the government increased the prices of fuel oils by 15 to 16 per cent a day ago.
Traders said that the increases in fuel prices would raise transportation costs, putting additional pressure on commodity prices in the coming days.
Economists and consumer rights activists said that the increase in fuel prices would have a negative impact on all areas of life and economy because everything is connected or related to fuel.
The sufferings of the consumers, who have already been in hardship due to the ongoing fuel crisis, will only deepen due to the government decision of hiking fuel prices, they added.
Drivers of ridesharing and city bus services charged increased fares saying that they were under double pressure due to the ongoing fuel crisis and the latest hike in fuel prices. The number of buses was fewer on city roads on the day.
In Barishal, the fares of some of the road and water transports increased by 10 to 20 per cent.
Md Anisur Rahman, additional secretary (urban transport wing) at the Road Transport and Highways Division under the road transport and bridges ministry, said that they had taken an initiative to readjust bus fares.
The Bangladesh Road Transport Authority on Sunday at 7:00pm started an urgent meeting of the passenger motor vehicles fare re-fixation committee at its headquarters. Till filing this report at 9:30pm no decision regarding the fares were taken.
The same day the Bangladesh Inland Waterways (Passenger Carriers) Association sent a proposal to the Bangladesh Inland Water Transport Authority to increase launch fares by over 40
per cent.
The government on Saturday increased the price of diesel from previous Tk 100 to Tk 115 per litre, octane from Tk 120 to Tk 140 per litre, petrol from Tk 116 to Tk 135 per litre and kerosene from Tk 112 to Tk 130 per litre.
The new prices came into effect from Sunday.
Mustafizur Rahman, a distinguished fellow at Centre for Policy Dialogue, said that an increase in fuel prices raises both transportation and production costs, which in turn affects nearly all sectors of the economy.
However, he said, the extent of the impact depends on how large a share fuel costs constitute within the overall production or transport system.
‘In Bangladesh, prices of almost all goods and services tend to rise disproportionately when fuel prices increase, placing an added burden on the consumers,’ he added.
Mustafizur observed that a price hike might be unavoidable in the current global context, but the government still had a role to play in managing its impact.
‘The government must ensure strict monitoring so that prices and costs do not increase unreasonably. At the same time, they should give attention to strengthening social safety net programmes so that low-income groups are not disproportionately affected by rising prices,’ he added.
Since Sunday morning, fewer city service buses were seen running on the roads.
Passengers alleged that they had to wait longer to get buses and some bus staffs charged extra from them.
‘I daily go to Rampura Bridge from Bashundhara by Raida Paribahan buses for Tk15 as fare,’ said Selim Abdullah, a commuter who added that on Sunday he had to pay Tk20 for the same distance on the same company bus.
Sumera Tahsin, another commuter, said that she was trying to get on a bus from Nabisco crossing in the afternoon but a huge crowd was waiting for buses.
The number of buses was fewer compared to other days, she said, adding that she had to rent a battery-run rickshaw to go to Khilgaon.
On the day, many drivers of ridesharing services also charged extra in the capital.
Sumon Mehedi, a motorcyclist under a ridesharing app, said that he was charging Tk 150 from Hatirpool to Gulistan while the app fare was around Tk100.
‘Some riders are charging up to Tk70 more,’ he said, adding that both fuel crisis and the price hike compelled them to charge more to survive.
New Age correspondent in Barishal reported that a section of owners increased the fares of road and water transports by 10 to 20 per cent.
‘On the Barishal-Dhaka route, the deck fare on water transports has been increased from Tk250 to Tk300,’ said Sundarban Launch fleet Barishal office manager Zakir Hossain.
No decision has been made for the cabin fare yet, he added.
Dwip Das Jibon, in-charge of Dhaka-Barishal route buses of Sakura Paribahan, said that the fare of non-AC buses increased from Tk550 to Tk 600.
At the Barishal Natullabad bus stand, internal route bus owner Mustafa Kamal said that the fare for the internal route from Barishal to Madaripur had not been increased yet but discussions were underway.
Over the past month, prices of essential commodities at kitchen markets in the capital have remained high due to supply disruptions, largely driven by transportation constraints caused by fuel shortages.
Fuel shortage has disrupted the arrival of trucks carrying essentials at wholesale hubs such as Karwan Bazar, pushing up prices, they added.
Sonali and broiler chickens, eggs, and almost all sorts of vegetables were selling at elevated prices, with no vegetable available below Tk 80 per kilogram.
Meanwhile, a severe shortage of soybean oil persisted, with one- and two-litre bottles nearly disappearing from the market. Loose soybean oil was selling at unusually high prices.
Md Imran Master, president of the Bangladesh Kachamal Arat Malik Samity, told New Age that the impact of fuel shortages had been evident in kitchen markets since the outbreak of the conflict in the Middle East, severely affecting supply chains.
‘Transportation and irrigation activities have been disrupted due to the crisis, contributing to price increases. Any further rise in fuel prices must have an immediate impact on commodity prices,’ he said.
He added that until fuel supply normalised, it would be difficult to determine whether shortages or rising costs were the primary drivers of current market volatility.
Consumers Association of Bangladesh vice-president SM Nazer Hossain said that the impact of increase in fuel prices would have a negative impact on all areas of life because everything is connected or related to fuel.
‘For instance, transportation, public transport, industries, factories, homes, offices, and courts — all of these are related to fuel prices,’ he said, adding, ‘Therefore, all costs will now go up.’
He went on that with increase in costs the personal expenses will also rise.
While the consumers are already facing high prices for everything, the fuel price hike will further deepen the sufferings, Nazer said.
‘We feel that the government could have avoided increasing the fuel price at the moment,’ he said, expressing the fear that the price hike could also increase the tendency to hoard fuel because many people had taken advantage of it by hoarding and raising prices to make money.
‘So, it does not seem to us that the next crisis (the price hike) will be easily resolved,’ he added.
Our correspondent in Sylhet reported that public transport owners of Sylhet already took a move to increase the transport fare.
Sylhet District Bus Malik Samity general secretary Abed Sultan Chowdhury Tarek said that they had already sent a proposal to the government through the BRTA chairman to increase transport fares.
New Age correspondent in Rajshahi reported that bus fares in Rajshahi had not been increased as of Sunday evening.
Nazrul Islam Helal, general secretary of the Rajshahi Road Transport Group said that they were waiting for the fare adjustments by the government.
Meanwhile Bangladesh Inland Waterways (Passenger Carrier’s) Association acting chairman Badiuzzaman Badal said that they had proposed in the letter to the BIWTA to increase passenger fares by about 36 per cent or Tk one to Tk 3.77 per kilometre for the first 100 kilometres and for distances over 100 kilometres, proposal was given to increase the fare by about 42 per cent or Tk 1 to Tk 3.38 per kilometre.
A proposal was also given to hike the minimum fare from Tk 29 to Tk 35, he added.
Meanwhile, the Passenger Welfare Association of Bangladesh on Sunday in a press release urged the authorities concerned to increase bus fares by Tk0.15 per kilometre and reform the fare fixation committee by including passenger and consumer representatives.
The association also alleged that the BRTA had called a meeting in secret to increase fares by bypassing the media and important stakeholders.
