Bangladesh likely to raise fuel prices

24 Apr, 2006

Bangladesh, where soaring prices of fuel and commodities have set off violent protests, said on Sunday another hike in petroleum prices may come soon.
"We may have no alternative but to raise domestic fuel prices following continuing rise in oil prices in the international markets," Mahmudur Rahman, government's energy adviser, told Reuters.
Bangladesh, which last raised retail prices in September last year, has been caught by oil prices scaling record highs above $75 a barrel because it imports all its oil needs.
"The soaring price in global markets is ringing an alarm for us. It will have a chain effect on everything in our country as well," Mahmudur said.
Bangladesh had little choice but to raise prices, he said, despite the likelihood of a public backlash in a country already caught up in violent opposition protests.
Prices of food and other commodities have risen by up to 40 percent since January and a previous government plan to raise fuel costs, in February, was cancelled due to protests.
"The issue is sensitive. We are reviewing it but may have to proceed with a raise," Mahmudur said, adding the prime minister would have to approve any price increases.
The government is keen to avoid anything that would inflame opposition protests ahead of an election due next January, officials and analysts say.

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