Bangladesh has increased fares of public transport run by compressed natural gas (CNG) by almost 35 percent, a senior official said on Sunday. "We are monitoring strictly whether the new fare is being followed and if any one charges more than the fixed fare, will be dealt with seriously," said Mahbubur Rahman, secretary of the ministry of communications.
The new fare came into effect on Saturday, he said. The government's energy division last week doubled CNG prices to cut losses incurred by state-run Bangladesh Oil, Gas and Mineral Corp (Petrobangla), estimated at 800 million taka ($12 million) a month for providing subsidies to the natural gas sector.
On Thursday prices of per cubic metre of CNG rose to 16.75 taka from 8.5 taka.
According to the new rates, the average fare for CNG-run auto-rickshaw is 8 taka, up from just over 6 taka for every kilometre. "Due to heavy subsidies in the energy sector, the government has to do it, but it is also true that the new fare will add more sufferings to common people who are already burdened with abnormal price hike of essentials," said Qazi Kholiquzzaman Ahmed, president of Bangladesh economic association.
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