Home ›› 09 Aug 2022 ›› Editorial
Commodity prices are surging. And they are increasing at a much faster pace than anticipated, burdening millions of low-middle-income households and raising risks to the economy. The skyrocketing commodities have already upended the lives of people with limited income. The recent announcement of an unprecedented hike in fuel prices has worsened the already fragile condition of the common people.
People were expecting a hike in fuel prices but they hope that the price will rise incrementally. The general impression is that the authorities did not take into consideration people’s sufferings and the pressure on their financial well-being.
If previous experience is anything to go by if the price of fuel increases, it has a direct and significant impact on the cost of living including industrial and agricultural products and public transport fares. According to a report published in The Business Post on Monday transport costs, domestic workers’ wages, education and medical expenses, and house rents have gone up significantly. Transport owners increased fares by 16-22 per cent per kilometre for long-haul transports as well as those running in Dhaka and Chattogram metropolitan areas. Along with bus fares, other transport costs went up as well, the report adds.
The minister concerned categorically stated that fuel prices will increase within tolerable levels to deal with the crisis. However, an increase of 51 per cent does not gel with the minister and advisor’s statement.
Unscrupulous traders seem to be hell-bent on taking advantage of the prevailing uncertainty to jack up prices of essential food items in both urban and rural centres as the government apparently failed to put in place any regulatory mechanisms to prevent price-gouging. On top of spiralling inflation and an almost daily increase in prices of daily-use items, the ‘self-created’ hike by manufacturers, wholesalers, retailers and service providers have pushed people deeper into financial stress, making their lives more miserable. And only cosmetic measures to control the prices in the absence of a price and profit assessment and regulation mechanism will not work.
The fallouts of the pandemic and the increase in commodity prices have adversely impacted the living conditions of not only the low-income and marginalised people but also the lower and middle class. According to a survey published at the end of last year, the pandemic has pushed an estimated 32 million people into poverty. Many people are forced to dip into their savings to run their families. Many have resorted to encashing their savings certificates. The sharp increase in commodity prices and living costs in recent months means that many families are forced to eat less. While experts think offering consumer goods to low-income families at a subsidized price will help in a short time, they blame the government for not being able to control the market.
The authorities concerned must take into consideration people’s sufferings before taking any decision.
The welfare of the people should be the cornerstone of any policy decisions.
The incumbent government has been prudent and efficient in managing the economy. Bangladesh as an economic success story has been appreciated across the world. However, controlling and monitoring prices have been drawbacks for the government. We believe that the measures that the government has taken to tackle the situations caused by the global crisis are mostly correct but whether these measures are being implemented properly will have to be monitored. Actually, reports suggest that many members of the ruling Awami League are worried over the prevailing situation and are concerned about people losing patience. Bangladesh is witnessing a difficult situation like the rest of the world because of global factors but corruption has its share too. And the government has not been very successful in reining in the corrupt elements. We urge the government to reconsider the fuel price hike and keep the commodity prices within tolerable limits.
